Women prefer insurance investments, while young Indians embrace stocks: Fin One Report

A comprehensive report titled India’s Financial Outlook 2024 by Fin One, released by Fin One, the digital initiative of Angel One (NSE: ANGELONE; BSE: 543235), has shed light on significant trends in the savings and investment habits of Indians. Based on data collected by Nielsen Media, the report highlights disparities across gender, age, and regional demographics that shape the financial decisions of young Indians.

Key Insights from the Report

Tier 3 Cities Show High Savings Discipline

42% of Tier 3 respondents save over 30% of their income, surpassing Tier 1 (35%) and Tier 2 (37%) counterparts, breaking the stereotype of urban areas being more financially forward.

South India Tops Savings Culture

48% of respondents in the South save 20–30% of their income, leading other regions in disciplined financial planning.

Younger Indians Prioritise Early Savings

59% of 18–21-year-olds save 20–30% of their income, compared to 39% in the 22–25 age group, reflecting an early focus on financial security.

Preference for Stocks in Smaller Cities

Stocks are the top investment choice for 62% of Tier 3 respondents, higher than Tier 2 (48%) and Tier 1 (31%). Awareness of stock investments is also higher in Tier 3 cities (91%).

Women Gravitate Toward Insurance Investments

Women are 2.7 times more likely to prefer insurance investments (8%) than men (3%). However, men show a stronger preference for stocks (48% vs. 39% for women).

Digital Platforms Empower Women

YouTube serves as a critical tool for financial education, with 74% of women relying on it, compared to 59% of men.

Gaps in Financial Literacy

While financial literacy is improving, 40% of women struggle with understanding taxation and investments, and 50% of men find investments challenging.

Emergency Funds Gain Priority in Urban Areas

20% of Tier 1 respondents prioritize saving for emergencies, significantly higher than in Tier 2 and Tier 3 cities (10% each).

Young Adults Prefer High-Risk Investments

72% of the 18–21 age group prefer stocks, compared to 46% of the 22–25 age group, reflecting a bolder investment approach among younger individuals.

Family-Inspired Financial Trends

Tier 1 respondents are three times more likely to manage household finances jointly, while Tier 3 respondents often rely on their parents.

Expert Commentary

“Fin One’s findings highlight the shifting dynamics of India’s financial landscape, from Tier 3 cities’ surprising savings habits to the rising importance of digital platforms in financial literacy,” said Paarth Dhar, Vice President, Angel One. “Our mission is to empower Indians with actionable insights, helping them make informed financial decisions for a secure future.”

Previous Insights

The earlier report, Fin One: Young Indians’ Saving Habits Outlook 2024, revealed similar trends, with 93% of young Indians actively saving, primarily allocating 20–30% of their monthly income. Stocks and mutual funds emerged as top investment choices, with YouTube being a popular source of financial guidance.

The latest report underscores the need for tailored financial education and awareness campaigns to bridge existing gaps and guide diverse demographic groups toward sound financial planning.