2.7x of Women Are More Likely Choose Insurance Investments Than Men, Fin One Report Reveals
Fin One report uncovers significant regional, gender and age disparities in savings and investment habits among young Indians
Fin One, the digital initiative of Angel One (NSE: ANGELONE; BSE: 543235) released a comprehensive report “India’s Financial Outlook 2024 by Fin One” exploring Gender, Age, and Tier-Based Financial Behaviours. The report reveals key trends in the savings and investment behaviours of Indians, based on data collected by Nielsen Media. The research offers a deep dive into how different demographics, regions and genders are approaching their financial futures, highlighting some striking disparities and insights that could reshape the way we think about financial planning.
Key Findings:
- High Savings in Tier 3 Cities: The report highlights that 42% of Tier 3 respondents save over 30% of their income, outperforming Tier 1 (35%) and Tier 2 (37%) cities in disciplined savings. This trend challenges the traditional notion of urban areas being more financially forward.
- South Zone Leads in Savings: In regional savings trends, 48% of respondents from the South save 20–30% of their income, outpacing other regions in disciplined financial planning.
- Younger Indians Prioritize Savings: Financial awareness is high among younger Indians, with 59% of 18–21-year-olds saving 20–30% of their income, compared to only 39% in the 22–25 age group. This shift underscores an early focus on building savings.
- Stocks as a Preferred Investment in Smaller Cities: Stocks are the preferred investment for 62% of Tier 3 respondents, surpassing 48% in Tier 2 and 31% in Tier 1. Awareness of stocks is also high in Tier 3, with 91% of respondents familiar with this investment option.
- Gender Differences in Financial Preferences: The report reveals a notable gender gap in investment choices, with 48% of men preferring stocks, compared to 39% of women. Women are 2.7 times more likely to prefer insurance investments (8%) than men (3%), reflecting a greater emphasis on long-term financial security among women. 48% of women are familiar with credit scores, compared to 31% of men.
- Digital Education for Women: Digital platforms, especially YouTube, are becoming essential for financial education, with 74% of women turning to YouTube for financial knowledge, compared to 59% of men.
- Challenges in Financial Literacy: Financial literacy remains an area for improvement, as 2 in 5 women report difficulty understanding taxation and investments, while 1 in 2 men find investments challenging. This underlines the need for enhanced financial education.
- Emergency Funds in Tier 1: Nearly 20% of Tier 1 respondents prioritize saving for emergency funds, a significantly higher rate than in Tier 2 (10%) and Tier 3 (10%), reflecting greater awareness of financial preparedness in urban areas.
- 72% of the 18-21 age group prefer stocks as an investment option, compared to 46% in the 22-25 age group, highlighting young adults’ preference for high-risk investments.
- Regional Investment Knowledge: Around 1 in 2 Tier 1 respondents are aware of bonds, compared to approximately 1 in 3 respondents in Tier 2 and Tier 3 focusing on the need for financial education.
- Family-focused financial trends: Tier 1 respondents are 3x more likely to manage household finances jointly compared to Tier 2 and Tier 3. Tier 3 respondents are nearly twice as likely to rely on their parents to manage their finances compared to those in other tiers.
“Fin One’s research sheds light on the shifting dynamics of India’s financial landscape. From surprising savings habits in Tier 3 cities to the increasing role of digital platforms in financial education, these insights offer valuable direction for both investors and policymakers,” said Paarth Dhar, Vice President, Angel One. “Our goal at Fin One is to empower Indians with insights, guiding them toward informed financial choices for a secure future.”
The previous report titled, Fin One: Young Indians’ Saving Habits Outlook 2024, brought forth evolving financial behaviours of Millennials and Gen Z across India, such as 93% of young Indians consistently saving, primarily setting aside 20-30% of their monthly income. Stocks and mutual funds are favoured, with 58% investing in stocks followed by 39% in mutual funds. Younger groups between the age of 18-21 show a strong preference for stocks and around 62% rely on YouTube for financial guidance, with family and friends as secondary sources. The report also mentioned that 71% of respondents feel financially literate.
About Fin One:
Fin One, an initiative by Angel One, focuses on enhancing financial awareness in India, especially among youth and rural communities. It delivers educational content in regional languages and promotes responsible financial practices. Fin One aims to foster financial inclusion and awareness across the nation. This initiative is not just about imparting knowledge; it’s about shaping a financially savvy generation poised to navigate the complexities of the modern financial world with confidence.
About Angel One
Angel One Limited, (NSE: ANGELONE, BSE: 543235) is the listed retail stock broking house in India, in terms of active clients on NSE. Angel One is a technology-led financial services company, providing broking and advisory services, margin funding and distribution of third-party financial products to its clients. The broking and allied services are offered through online and digital platforms to clients acquired directly and through assisted business.
Angel One Limited extensively uses Artificial Intelligence, Machine Learning and Data Science to create a digital experience. The company has built a host of digital properties like Angel One Mobile App, ‘ARQ Prime’ a rule-based recommendation engine, ‘SmartAPI’ a free-to-integrate API platform and ‘Smart Money’ an investor education platform for over 28 million clients.
