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A recent survey conducted by StockGro (a fintech firm) and 1Lattice (a research firm) on 50,000 investors reveals that women investors prefer mutual funds over stocks, with 38% choosing mutual funds compared to 27% for direct stocks.
In terms of overall investors (both men and women), it found 37% prefer mutual funds. This preference is even stronger among young investors with less than 1 year of experience with 48% choosing mutual funds.
In terms of current non-investors, 45% said they want step-by-step guidance before beginning their investment journey while 32% said they would start immediately if given free initial support.
While investments in equity products like mutual funds and stocks have increased, there has been a slight decrease in insurance funds like. The number of households investing in insurance funds dropped from 6% in FY21 to 5.7% in FY24.
Family remains the primary source of financial advice for investors, with 49% relying on family members for investment decisions. This number is even higher among women, with 53% taking advice from family compared to only 13% consulting financial advisors. Only 10% of all investors consult financial advisors. The key reason behind lower acceptability of financial advisers is skepticism about their services, says the survey. This trust gap presents a significant challenge for the financial advisory industry.
Younger investors are entering the market at an unprecedented rate, with investors under 30 doubling in the last six years. The pandemic and FOMO (fear of missing out) have been major factors influencing young investor behavior, said the survey.
Here are the other key points from the survey:
- Online video courses and self-practice are the most preferred learning methods among investors while group workshops and one-on-one mentorship were the least popular options
- The biggest fear among non-investors is losing money, followed by lack of trust in markets
- 80% of investors regularly track market trends, showing high engagement with their investments
- Long-term wealth creation remains a priority for 40% of investors across the country. This focus on the future indicates a maturing investment mindset among Indians
- 29% of investors don't attend workshops due to high costs, suggesting a need for more affordable learning options
- 40% of women don't invest due to lack of understanding, pointing to a significant education gap
