Stocks surpass Mutual Funds as the preferred investment option among Gen Z by 39%

Nearly 4 in 5 individuals save money to invest for future financial security

November 11, 2024, Mumbai, India: In a recently released report Fin One: Young Indians’ Saving Habits Outlook 2024, shedding light on the evolving financial behaviors of Millennials and Gen Z across India, released by Fin One, a digital-first initiative by Angel One Limited. The data for the report was compiled by leading research firm, Nielsen. The report reveals that 93% of young adults are consistent savers, with majority saving 20-30% of their monthly income. Additionally, stocks have emerged as the preferred investment choice, with 45% of respondents favoring them over more traditional options such as fixed deposits or gold.

The report draws data from 1600+ young Indians in more than 13 Indian cities, benchmarking four key areas: saving behavior, investment preferences, financial literacy and the use of technology and financial tools. This first report on saving habits from Fin One also highlights significant regional variations in saving practices.

The report further emphasizes the role of digital platforms and technology, noting that 68% of respondents regularly use automated savings tools, underscoring the growing impact of fintech on the financial habits of India's younger generation.

Key insights from the report include:

Consistent Savings Practices:

A remarkable 93% of respondents identify as consistent savers, with the majority setting aside 20-30% of their monthly income for future financial goals. This reflects a growing culture of financial discipline, especially in the 22-25 age group, as young adults start their financial journey.

Investment Preferences:

58% of young Indian investors currently invest in stocks, while 39% favor mutual funds. Safer options like fixed deposits (22%) and recurring deposits (26%) see relatively lower adoption. This indicates a balanced approach between high returns and stable savings among the youth.

72% of 18-21-year-olds prefer stocks over other options like Fixed Deposits, Mutual Funds and Gold.

With 62%, YouTube is a primary source of education for savings and financial planning among those surveyed. Family and friends remain the secondary source of financial education for 52% of youth, surpassing popular finance influencers.

Barriers to Savings:

Despite disciplined saving habits, 85% of young Indians cite the high cost of living—particularly food, utilities and transportation—as the most significant barrier to saving. This indicates rising living costs are a critical challenge for India’s youth.

 

Technology:

68% of respondents use automated savings features and mobile apps to manage their finances.

Financial Literacy:

71% of respondents consider themselves proficient in financial literacy.

 

“As India’s youth increasingly turn to the internet for financial guidance, we are witnessing a growing appetite for financial awareness and education among Millennials and Gen Z. YouTube has become central to this shift, with over 62% of young investors relying on it as a primary source of financial learning. In today’s digital age, with rising cyber threats and evolving financial landscapes, it is more important than ever for young adults to build a strong foundation in financial literacy. Saving and investing are not only essential life skills but also key opportunities for long-term wealth creation. At Fin One, we are committed to empowering India’s younger generation with the knowledge and tools they need to make informed financial decisions and secure their financial future.” added Paarth Dhar, Vice President, Angel One.

This survey reaffirms the growing importance of financial literacy, disciplined saving and the use of technology among India’s young population. Angel One remains committed to driving financial empowerment in India through its innovative solutions and educational initiatives.

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.

Angel One Limited, (NSE: ANGELONE, BSE: 543235) is the largest 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.