Only 3% of families invest in the stock market: Money9 Survey

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Stock markets in India can be booming, as can investments in mutual funds. But do you know how many Indian families actually invest in the stock market and mutual funds? Only 3% of Indian families invest in stock markets and just 6% in mutual funds. The largest share of investments goes into real estate at 18%.

These are some of the findings of India’s first and largest independent personal finance survey conducted by Money9, a digital offering of TV9 Network, India’s leading TV news network.

Despite the robust growth in financial inclusion and the booming financial services sector, almost 69% of Indian households are struggling due to financial insecurity and vulnerability. The survey, released on Saturday, for the first time, maps Indian household income, savings, investment and spending. It provides crucial information on how India earns, spends and saves. The survey also unveiled India’s first-ever state ranking of citizens’ financial security, i.e. the Money9 Financial Security Index.

The Money9 Personal Finance Survey is a nationally representative household survey with a mega-sample of 31,510 households in 1,154 urban wards and villages in 100 districts and 20 states or groups of states. The survey was conducted between May and September 2022.

The Money9 survey was carried out in collaboration with the Research Triangle Institute (RTI) Global India, a subsidiary of RTI International (USA).

The scale of the Money9 personal finance survey is comparable to that of the RBI and NCAER, in terms of design and geographic coverage. The survey took a holistic, systematic and interconnected approach to focus on the demand for personal financial services to measure the financial security levels of Indian households, across states and districts across India.

Main results of the survey

The survey reveals that the average income of an Indian family of 4.2 people is Rs 23,000 per month. More than 46% of Indian families have an income of less than Rs 15,000 per month, i.e. belong to the cohort of seekers or to the lowest incomes.

Only 3% of Indian households have a luxury standard of living and most of them belong to higher income cohorts (upper-middle and wealthy)

A survey reveals that 70% of Indian households save money in the form of bank deposits, insurance, postal savings and gold. The incidence of savings is less prevalent among the aspirant class. Similarly, two-fifths of Indian households in the same class are unable to make any financial savings. There is a clear need to address this segment by decision makers/market players.

The survey reveals that 22% of Indian households invest in stocks, mutual funds, ULIPs and physical assets. However, investment in property/land is high (18%), followed by mutual funds (6%), stock market (3%) and ULIP (3%).

The survey reveals that only 11% of Indian households have active loans with banks or NBFC. Among all loans to individuals, the consumption of personal loans is the highest, followed by that of home loans

India’s Money9 Financial Security Index, which ranks states in terms of security on several parameters. This index reveals that 42% of half of Indian households are “precarious” (this includes households with monthly incomes of INR 15,000 or more). The level of financial insecurity further increases to 69% after including the lowest income cohorts i.e. households with monthly incomes of up to Rs 15,000.

Commenting on the significance of the survey, Barun Das, MD and CEO of TV9 Network, said, “The survey results highlight the critical gap between demand and supply in the area of ​​personal finance. The data should help various stakeholders to quickly renovate the demand side and, at the same time, understand the gap on the supply side. And thus, we would be able to complete our journey to financial security through financial wisdom. Money9 is committed to playing a central role in bringing about this paradigm shift.”

Anshuman Tiwari, Editor of Money9, said, “This survey has provided unique and very valuable insights into the financial security of the masses in India and their income saving behavior. financial security objective.

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