Listen to this article
The trend of rising inflows in mutual funds may not ebb anytime soon. According to a recent YouGov survey, almost 4 in every 10 urban Indians plan to increase their investment in mutual funds in the future.
The rest of the participants in the survey either want to keep the allocation unchanged or lower the investment amount in the near future.
"The future looks brighter and many more individuals (38%) plan to invest more in mutual funds in the times to come. This claim is more strongly held by those residing in western part of the country (41%) than those living in East (32%) and South India (37%)," the report stated.
The survey shows that 25% of Indians residing in urban areas increased their mutual fund investments in the past six months. More than half the respondents said their allocation has remained the same. The highest interest in mutual funds was seen among millennials and those investors who live in Tier 2 cities. 29% of the investors who increased the mutual fund allocation were millennials and 30% were residents of Tier II locations.
Respondents who have increased their mutual fund investment cited 'long term benefits and wealth creation potential' as the biggest reason. Other major reasons were building emergency corpus, generate higher returns in the short term and increase income.
The survey received responses from over 1,000 investors, as per YouGov.
