Mumbai Capital

Indians save and invest the most

Indians are also looking to increase their exposure to stocks and equity mutual funds over the next 12 months.—file photo: AFP  

Globally, Indians are among the most positive about their financial future and have the highest instance of saving and investment. Also, Indians believe they are overexposed to cash and deposits and want to lower their allocation to these asset classes.

Indians are also looking to increase their exposure to stocks and equity mutual funds over the next 12 months and feel that factors like high cost of living and children’s education make retirement planning difficult in India.

These are some of the findings of the latest BlackRock Global Investor Pulse Survey. A total of 31,139 people across 20 markets participated in the survey that also included 1,500 respondents in India.

Among Indians, the survey revealed a few key financial themes like the intent to reduce exposure to idle cash and invest in other asset classes even as physical gold and property remain popular. High real estate prices, however, are a concern.

As per the survey, retirement, children’s education, and buying a home are the top three investment goals for Indians, who are the highest consumers of financial advice in the world. Family plays a major role in investment decision-making.

According to a statement issued by DSP BlackRock India, high cost of living and healthcare costs are prevalent concerns, prompting Indians to make saving money, growing their wealth and long-term healthcare some of their top financial priorities.

“India’s relatively stronger positioning among global markets is reflected in the upbeat investor sentiment shown in the survey,” said S Naganath, president and chief investment officer, DSP BlackRock Investment Managers Pvt Ltd. “The findings of the DSP BlackRock Investor Pulse Survey on investor preferences, retirement planning and financial advice continue to be encouraging,” he said.

The survey also revealed that while most Indians recognise the need to plan for retirement and have started to save specifically for it, they are concerned that they won’t be able to live comfortably post retirement.

“Those Indians who haven’t started saving for retirement mentioned ‘other priorities’ and ‘not earning enough money’ as reasons why they haven’t started yet. Indians seemed to significantly underestimate the corpus they would need for a comfortable retirement,” said the release.

Interestingly, around 60 per cent of male respondents felt their spouse knows as much or more than them when it comes to their investments while the corresponding figure for women respondents was over 90 per cent.

However, even in cases where the investment decision-making process was shared between the husband and wife, the final decision was taken by the male in a majority of cases.

Of those who do share financial decision making, only 31 per cent of women respondents are likely to make the final decision as compared to 60 per cent of men, showed the survey.

Meanwhile, most Indians who participated in the survey felt issues like the country’s economic performance, job market and economic reforms have either improved or remained consistent over the past year.

Family plays

a major role

in investment decision-making,

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Printable version | Jan 25, 2021 2:22:16 PM |

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