Mutual funds and fixed deposits remain the top choices for financial investments among a majority of people, with 54% and 53% respectively favouring these options, according to the BankBazaar survey.
However, the most popular financial product overall is the humble savings bank account, chosen by 77% of respondents, even though it is not considered an investment avenue.
When it comes to gender split, men are slightly more inclined towards savings bank accounts, with 79% choosing this option compared to 76% of women.
However, there has been a decrease in the number of women investing in mutual funds this year, with only 50% taking part, compared to 56% of men. This signifies a notable change from the statistics of 2022.
As per the survey, the global landscape has been impacted by geopolitical tensions and high inflation in the past two years, resulting in reduced or stagnant savings for most people in India during 2023.
The North region experienced the most significant drop in savings at 44%, while the West recorded the highest percentage of stagnating savings at 25%.
Moreover, cryptocurrency has lost its appeal due to revised laws imposing a 30% tax, causing people to opt for more conventional investments like fixed deposits, stocks, and mutual funds.
An alarming trend this year is the decline in retirement planning, with only 38% of people saving for retirement, marking a 7% decrease from the previous year.
Furthermore, the data from this year serves as a reminder of the inadequate insurance coverage in India, with 6% of respondents having no insurance at all and only 16% possessing health insurance, says survey.
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