A recent survey by Aviva Life insurance company called “Plan India Plan 2017” has observed that Indians are big dreamers but when it comes to financial planning they lag behind by a distance. This wide gap exists despite various efforts taken by the financial services industry to educate investors through IAPs and financial literacy campaigns.
The survey showed that in India millennials (between 25-29 years) were better at dreaming and having a financial plan to achieve the financial goals. In terms of the dream index, 75% of millennials had big dreams but 31% had done financial planning to get there. In comparison, those between 30-35 years are better at dreaming but only 27% have a financial plan to accomplish it. This is even lower in the age group between 36-45 years. Here is what various players in the MF industry feel need to be done to bridge this gap.
Radhika Gupta, CEO Edelweiss
I think we need to promote financial planning rather than individual products. We must also promote the need to stick to a financial plan. Ultimately, what is important is investment discipline and financial planning. Another important thing is that market players must promote mutual fund as a tool for asset allocation rather than a product in itself; this will go a long way in helping investors plan their finances better.
Vinod Jain, Founder Jain Investments
The industry has been giving high priority to investor awareness and I think these campaigns have started to bear fruit. I have been seeing an increasing interest among investors to invest in equity products, especially through SIPs. However, what could accelerate the momentum is a mandatory requirement for all investors to put aside a certain amount towards financial goals.
Suresh Sadagopan, Founder Ladder7
I feel the new generation of investors is more open to financial planning and has better knowledge of the various investment options. This might be because the millennials are more independent in their decision-making as compared to the older generation, which relied more on the previous generation’s opinion. Having said this, there is still a large segment of the population which does not think about financial planning. This however will change in due course, thanks to the constant efforts put in by the industry body and the regulator in increasing investor awareness.