Most of the youth prefer to invest directly in the stock market instead of MF, know what is the trend

Mutual funds may be a better medium to invest in the stock market, but the latest survey report says that a large section of young investors prefer to invest directly in the stock markets instead of taking the mutual fund route. According to Bhasha News, according to the report of Fin One, an initiative of financial technology brokerage company Angel One, 93 percent of young adults save consistently, most of whom save 20-30 percent of their monthly income.

Preference over traditional options

According to the news, the survey report says that shares are their favorite investment option. 45 percent of the people surveyed have preferred them over more traditional options like fixed deposits (FDs) or gold. Currently, 58 percent of young Indian investors invest in shares, while 39 percent prefer to invest in mutual funds. The brokerage company said in its report that safe options like fixed deposits (22 percent) and recurring deposits (26 percent) are being adopted relatively less. This reflects a balanced approach between high ‘returns’ and stable savings among the youth.

Questions on these topics asked in the survey

The latest survey report was prepared based on the responses received from 1,600 young Indians from more than 13 Indian cities. The questions asked to them were focused on four major topics – savings behavior, investment preferences, financial literacy, and use of technology financial instruments. The role of digital platforms and technology has also been highlighted in it. According to the report, 68 percent of the respondents are regularly using automated savings tools.

Despite disciplined saving habits, 85 percent of young Indians consider the high cost of living, particularly food, utilities, and transport, as the biggest barrier to saving. This shows that the rising cost of living is a serious challenge for India’s youth.