Indian investors to pump in 10-25% of income in 2022 in financial assets: Survey

Indian investors to pump in 10-25% of income in 2022 in financial assets: Survey

About 44% are willing to test cryptocurrency this fiscal, the survey by financial services platform Groww said.

(representational image) (representational image)

Encouraged by the performance of their investments in 2021, semi-urban and rural investors are willing to allocate a higher proportion of their savings to financial assets in 2022, an investment survey showed.

According to full-stack financial services platform Groww's survey released on Tuesday, about 9.21 per cent of individuals are willing to invest more than half of their income and another 7.97 per cent are aiming to invest 40-50 per cent of their income towards investments this year. The survey also showed that majority of respondents i.e. 43.17 per cent investors are looking to invest 10-25 per cent of their income in 2022.

The survey was conducted among individuals across 357 centres including semi urban and rural regions. More than half of the responses were received from Tier 4 markets such as Balasore, Medinipur, Ongole, Ballia, Deoria, Sikar, Nadia, Singabhum, Yadgir, etc., the survey added.

In retrospect, Groww's survey, which looked at investors’ portfolio performance in 2021, choice of investment baskets, expectations and strategies for 2022, highlighted that a majority of semi-urban and rural Indian investors expressed their satisfaction with the performance of their investments in 2021.

Investing in multiple investment baskets

In 2022, investors across India (urban, semi-urban and rural) are keen to explore multiple investment baskets, the survey pointed out. Allocation in 2022 could include initial public offers (IPOs), cryptocurrency and even stocks listed on US stock exchanges. About 61.3 per cent of the respondents said they would like to explore initial public offers (IPOs), while 44.8 per cent are willing to test cryptocurrency. Digital Gold and REITS too featured in the list of assets being aimed at in 2022. Interestingly, only 27.7 per cent of the respondents are not willing to dabble in unexplored asset classes, it added.

When asked about the type of stocks they would like to invest in 2022, 56 per cent investors are planning to invest in IT stocks, and 13.3 per cent indicated their willingness to invest in penny stocks followed by pharma, real estate and FMCG at 7.7 per cent, 7.1 per cent and 6.8 per cent, respectively.

Diversifying investment portfolios

Furthermore, a high number of respondents across India agreed to increasing their investments in stock markets and mutual funds for long-term gains (36.2 per cent) in 2021, even as less than a quarter wanted to make short-term gains (22.8 per cent).

When asked about their outlook for 2022, 51 per cent respondents said they would have an aggressive investing approach as against 49 per cent who chose to remain conservative. A majority are anticipating a steady or a bullish stock market ride until June 2022, with only 11.2 per cent foreseeing a bearish phase.

Investors are also planning to increase investments in mutual funds; 82 per cent plan to invest in this asset in 2022, as compared to 66.8 per cent in 2021, the survey added.

Harsh Jain, co-founder and COO of Groww, said, “We are witnessing a retail investing boom which is fuelled by smaller towns and cities all over the country. Tech investing platforms, a strong regulator, and the government's push for digitisation have unlocked the access to investing for thousands of retail investors all over the country.”

Founded by Lalit Keshre, Harsh Jain, Neeraj Singh and Ishan Bansal, Groww enables retail investors to access financial products and services through its web and mobile app on both iOS and Android. Groww is backed by marquee investors, including Sequoia Capital India, Y Combinator, Ribbit Capital, Tiger Global and Iconiq Growth.

Published on: Feb 16, 2022, 3:36 PM IST
Posted by: Aparna Banerjea, Feb 16, 2022, 3:32 PM IST