DSP BlackRock Investor Pulse study

2014 IIndia
di fi
findings
di
Cicero Research
14th January 2015

Media presentation

Global Overview and Methodology

Regions/ Markets:

20: US, Canada, Europe (UK, Germany, Italy, France, Belgium, Netherlands, Sweden), LAI
(Spain, Mexico, Brazil, Colombia, Chile), Asia (Hong Kong, Taiwan, Singapore, China, Japan, India)

Number of completes:

Nat rep- 27,500, including 7,296 Mass Affluent respondents

Research Method:

Online self-completion

Sweden: 1,000

Canada: 1,000

US:4,000

UK:2,000

Spain: 1,000

Germany, Italy (2,000

each), France, Belgium and
Netherlands
China: 2,000
Japan: 11,000
000
Taiwan: 1,000

Mexico: 1,000

India: 1,500

Hong Kong: 1,000

Colombia: 1,000
Si
Singapore:
1,000
1 000
Brazil: 1,000
Chile: 1,000
New to 2014
Markets in 2013

N.B. Australia/ Switzerland not included in 2014

Respondent Profile: India

The India
Th
I di sample
l is
i representative
t ti
off the
th online
li
population, which tends to be more urban and
wealthier than average. As a result poorer people
and those living in rural areas where online
penetration may
p
y be lower are under-represented.
p
In addition, all interviewing was conducted in
English.
All respondents
p
are household financial decision
makers age 25-74.
Mass Affluent group:

Total sample (n=1,500)

Mass Affluent

601

40%

Mass Retail

899

60%

Men

767

51%

Women

733

49%

Affluence level

Gender

Age

Defined
D
fi d in
i India
I di as those
th
satisfying
ti f i att least
l
t one off the
th
following criteria:

25-34

484

32%

Personal income of INR 25 Lakh

35-44

415

28%

45 54
45-54

310

21%

55-64

207

14%

65-74

84

6%

Household income of INR 40 Lakh

Investable assets of INR 40 Lakh
Mass Retail group:
Defined as all other respondents
respondents.

Executive Summary: Key Indian Messages

Indians are positive about their financial future, feel in control of their finances and
want to invest more

Indians are investing actively, but look for safe and consistent returns while investing

Preparing for lifes big events is a key driver of savings and investment behaviour

When it comes to financial advice, satisfaction and reliance levels are high, and the
advised investor feels better prepared

5
4

Section 1 - Financial Sentiment, Optimism and Control

Indians are p
positive about their financial future, feel in control of their finances and want to invest more

Sentiment Towards Economy: Global vs India

India

Global
Don'tt know
Don
3%
Getting better
22%

Staying about
the same 24%

Don't know
1%

Staying about
the same 37%
Getting
g better
56%

Getting worse
19%
Getting worse
38%

The majority of Indians - 56% - feel that the economy is getting better, significantly
Source:
Q16 - Dothan
you think the
the Countrys
is getting
better, getting worse, or staying about the same?
higher
resteconomy
of the
world
BASE: Global (n=27500) India (n= 1500) MA (n= 601)
6

Positivity About Financial Future Global vs India

NET: Negative

GLOBAL
Europe
LAI
Asia
Greater China

NET: Positive

41%

56%

49%

47%
32%
34%
29%

US
45%
Canada
44%
UK
45%
Germany
42%
Italy
58%
France
62%
Belgium
56%
Netherlands
41%
Sweden
40%
Spain
58%
Mexico
34%
Brazil
22%
Colombia
15%
Chile
30%
Hong Kong
30%
Taiwan
42%
Singapore
40%
China
21%
Japan 72%
India
18%

67%
64%
69%
52%
52%
51%
54%
40%
33%
39%
51%
55%
38%
65%
77%
84%
69%
67%
56%
57%
77%
23%
81%

Indians are very positive about their financial future they have the highest feelings of
Source:
Q9 - Overall, which,
of the following
words
best describes highest
how you feel about
your financial future?
positivity
in Asia,
and
second
globally
BASE: Global (n=27500) India (n= 1500)
7

Control of Financial Future: Global vs India

NET Not in control
NET:

GLOBAL
Europe
LAI
Asia
Greater China
US
Canada
UK
Germany
Italy
France
Belgium
Netherlands
Sweden
Spain
Mexico
Brazil
Colombia
Chile
Hong Kong
Taiwan
Singapore
China
Japan
India

NET In control
NET:

17%

55%

21%

47%
11%
9%
6%

28%
20%
19%
22%
26%
20%
25%
15%
21%
24%
11%
7%
5%
8%
11%
6%
13%
4%
23%
6%

61%
67%
74%
46%
47%
52%
46%
44%
42%
41%
54%
51%
45%
59%
73%
67%
59%
59%
70%
56%
84%
39%
75%

In line with their high levels of positivity, the majority of Indians feel in control of their
Source:
Q10 - To what
extent do you feel in control of your financial future? Please use a scale of 1 to 5, where 1 means not at all in control and 5 means completely in control.
financial
future
BASE: Global (n=27500) India (n= 1500)
8

Willingness to Invest in Stocks Compared to Five Years Ago

India

Global

Not
applicable
19%

More
interested
27%
About the
same
17%

Unsure
5%

About the
same
31%

Not
applicable
6%
Unsure
4%

More
interested
51%
Less
interested
18%

Less
interested
23%

The majority of Indians - 51% - are more interested in investing in stocks compared to
Source:
- Compared
to 5 years ago, are you more or less interested in investing in stocks?
fiveQ140
years
ago
BASE: Global (n=27500) India (n= 1500) MA (n= 601)
9

Willingness to invest in Equities Over the Next Twelve Months

GLOBAL

34%

52%

5%

10%

Add more money

Keep the same

Asia

34%

51%

India

54%

Mass
Mass Retail

62%

Male
Female

33%

46%

38%

62%

Age 45-54

48%

34%

Age 55-64

48%

34%

Age 65-74

47%

Advised
Not Advised

47%

1%

9%

2%

9%
15%

12%

29%
36%

2%

16%

35%

62%

2%

10%

29%

D 't know
Don't
k

2%

13%

34%

Take money out

1%

15%

37%

56%

1%

9%

29%

51%

Age 35-44

12%

28%

56%

Age 25-34

4%

11%

1%
6%

8%
16%

1%
2%

Indians are much more likely to increase their holdings of equities over the next
Source:
Q74 - Equities/Stocks/Shares
- For each
and investment
that you currently have (US/ LAI: your household currently has), over the next 12 months ?
twelve
months than
thesavings
rest
of theproduct
world
BASE: Global (n=8677) India (n= 657)
10

Sentiment Towards the Job Market: Global vs India

India

Global

Don't know
1%

Don't know
3%
Getting better
21%

Staying about
the same 25%

Staying about
the same 35%
Getting better
54%

Getting worse
19%
Getting worse
40%

The majority of Indians - 54% - feel that the job market is getting better

Source: Q17 - Do you think the Countrys job market is getting better, getting worse, or staying about the same?
BASE: Global (n=27500) India (n= 1500)
MA (n= 601)

11

Confidence in Achieving Financial Goals: Global vs India

% Confident of achieving

GLOBAL
69%

Saving
Savingmoney
money

68%

Saving/investing
to ensure that
I can live
comfortably
Saving/investing
to ensure
that
I can live
throughout retirement
comfortably
throughout retirement

84%
73%

Growing
Growingmy
mywealth
wealth
Being
able
to earn
or or
draw
ananincome
Being
able
to earn
draw
incomefrom
from my
my
savings / investments
savings / investments

90%

70%

88%
78%

Preserving/
holdingon
ontotomy
mywealth
wealth
Preserving/
holding

62%

65%

71%

89%

Leaving
Leavingan
aninheritance
inheritance

73%

Providing
financial
support
totoelderly
Providing
financial
support
elderlyrelatives
relatives

74%

Child's
Child'smarriage
marriage

92%

84%
80%
88%

Starting/
growing
myown
ownbusiness
business
Starting/
growing
my

Paying
offoffstudent
Paying
studentloans
loans

94%

87%
82%

Paying
off my
mortgage
onon
my
Paying
off my
mortgage
myonly/
only/main
mainhome
home

Saving
a deposit/
downpayment
paymentfor
foraahome
home
Saving
for for
a deposit/
down

93%

79%

Paying
credit
cardsororother
otherdebts
debts
Paying
off off
credit
cards

Long-term
healthcare/Paying
Long-term
healthcare/Payingfor
forlong
longterm
term
care/health
me
oror
spouse
spouse
care/healthcare
carefor
for
me
spouse

90%

81%

Financing
child/children'seducation
education
Financing
mymy
child/children's

Getting
Gettinga abetter
betterpaid
paidjob
job

India

87%

78%

90%
89%
85%
90%
90%

Confidence in achieving financial goals is high. Indians are most confident about
Source:
Q14SUM1
- Summary
Table % off
Confident
- Overall, and
how confident
are you that you willand
achieve financing
each of these priorities?
being
able
to pay
debts
mortgages,
their childrens education
BASE: Global (n=26380) India (n= 1482)
12

Concerns that Pose a Risk to Financial Future: Global vs India

54%

High
costofofliving
living
High
cost
State State
of theofdomestic
the Indianeconomy
economy

38%

Changes
in inflation/
rising
Changes
in inflation/
risingprices
prices

38%

Healthcare
Healthcarecosts
costs

Job
Jobsecurity
security
State
of of
the
global
State
the
globaleconomy
economy
OilOil
and
andenergy
energyprices
prices
Politicalinstability
instability
Political
Housing/
Housing/real
realestate
estatecosts
costs
Changes
inininterest
Changes
interestrates
rates
Unanticipated
cost
of supporting
parents/ other
Unanticipated
cost
of supporting
parents/other
family
family members
members
Volatility
ofofstock
Volatility
stockmarkets
markets
Living
Livinglonger
longer

Foreign
exchangerate
ratemovements
movements
Foreign
exchange
State
theChinese
Chineseeconomy
economy
State
ofof
the
Don'tknow
know
Don't

GLOBAL

46%

India

43%

35%
32%
28%
33%
27%
24%
27%
33%
25%
22%
21%
23%
20%
30%
17%
16%
15%
19%
14%
16%

Tax
increases/tax
taxpolicies
policies
Tax
increases/

State
Stateofofthe
theUS
USeconomy
economy

58%

51%
49%

8%
9%
7%

13%

6%
6%
4%
2%

Indians are most concerned about the high cost of living, the state of the domestic
Source:
Q15 - Which, ifand
any, of the
following concerns
do you think
a risk to your
future?
economy
inflation
when
it pose
comes
tofinancial
potential
risks to their financial future
BASE: Global (n=27500) India (n= 1500)
13

Summary: Financial Sentiment, Optimism and Control

Indians are very positive about their financial future, feel in control of their finances and are confident
in making saving and investment decisions
81% are positive about their financial future. The average for Asia is 64% and the global
average is 56%.
In line with their high levels of positivity, the majority of Indians feel in control of their
financial future 75%.
Levels of confidence are also high
high, with 78% of feeling confident that they are making the right savings
and investment decisions.
Indians are most confident about being able to pay off debts, finance their childrens education, and
pay off mortgages
mortgages.
Indians are most concerned about the high cost of living, the state of the domestic economy
and inflation when it comes to potential risks to their financial future.

Despite these concerns, the majority of Indians - 56% - feel that the economy is getting better.

Over half of Indians (51%) are more interested in investing in equities now than they were
five years ago

14

Section 2 Asset Allocation

Indians invest actively, but look for safe and consistent returns while investing

Saving and Investment Patterns: Global vs India

Money to spend

31%

36%

31%

26%

23%

23% 23%

28%
35% 33%

39%

36% 38% 38% 35%

32%

35%

31% 29% 29% 30%

27%

21%

23%
40%

Save

15%
20%
24%

23%

32%

30%
39%
43%

29%

25%
24%

28%

25%
42%

40%

21%

21%

27%

32%

Mortgages, rent,
utilitiest
Invest

34%
35%

33%

24%

35% 27%

45%
41%

26%
51%

26%

21%

25%

27%
24%

21%
17%

16%
14%
10%

12%

21%
15%

4%
17%

13%

17%

11%

9%

7%

27% 28%
20%

17%

13% 11%

11%
10%

21%

14%

17% 18%

13% 10% 14%

20% 19% 22% 21% 21%

26%

30% 29% 29%

27%
21%

Indians save a lot about 27% of take home pay is saved, and 25% is invested. This is
Source:
Q64GL -than
Global Mean
Percentage
- In a typical
month how much
of your
(US/ LAI: households)
home pay
do you typically
save? the Americas
higher
the
global
average,
and
much
highertake
than
Europe
and
BASE: Global (n=27061) India (n= 1478)
16

Cash as a Proportion of Savings and Investment Portfolios:

Global vs India

India

Global

NET: All types of Cash

13%

13%

NET: Equities
NET: Bonds
NET: Property

8%

NET: Other

11%

6%
5%
59%
15%

59%

13%

17

Reasons Cited for Holding Cash: Global vs India

43%

I want
to be
flexible
and
keep
myoptions
optionsopen
open
I want
to be
flexible
and
keep
my

53%
40%

Having
cash
Having
cashmakes
makesme
mefeel
feel safe
safe

53%
39%
39%

I am
cautious
I am
cautiouswith
withmy
mymoney
money

17%

It isessential
an essential
of an
investmentportfolio
portfolio
It is an
partpart
of an
investment

35%
15%

I don
don't
t know
enough
I don't
know
enoughabout
aboutinvesting
investing

10%
15%

I'm afraid
to invest
in in
the
financial
I'm afraid
to invest
the
financialmarkets
markets

22%
12%

I prefer
to stay
in cash
because
badinvestment
investment
I prefer
to stay
in cash
because
ofofa abad
experience inexperience
the past in the past

21%
9%

I have
never
really
thought
I have
never
really
thoughtabout
about itit

14%

I don't
know
what
withmy
mycash
cash
I don't
know
what
totododowith

4%
5%

Otherreason
reason
Other

5%
4%

Don'tknow
know
Don't

GLOBAL
India

3%
1%

Flexibility, feelings of safety and being cautious are the main reasons cited for holding cash
deposits.
Twice
asreasons
many
Indians
it isaccounts
an essential
partor of
a markets)
portfolio
Source:
Q122 - What
are the main
for you
holding cashbelieve
deposits or savings
(US, CA, LAI ONLY:
money
(INDIA: compared
or Fixed Deposits)? to globally
BASE: Global (n=20300) India (n= 1367)

18

What Would Encourage Indians to Invest More of Their Cash Savings

into Other Investments
52%
52%

Guaranteed
return
from
myinvestments
investments
Guaranteed
return
from
my

39%
35%

Knowing
thatthat
I won't
lose
mymy
initial
Knowing
I won't
lose
initialinvestment
investment

42%
30%

to understand
investmentsolutions
solutions
EasyEasy
to understand
investment

40%
26%
25%

Lower
costs
associated
withinvesting
investing
Lower
costs
associated
with

21%

Access
to online
savings
and
investmenttools
tools
Access
to online
savings
and
investment

27%
20%

Receiving
taxtax
breaks
onon
my
Receiving
breaks
myinvestments
investments

32%

Having
one simple
simplepot/vehicle
pot/vehicle
savings
Having one
forfor
all all
mymy
savings
and
investments and investments

18%
19%

Recommendation
fromfrom
a professional
financial
Recommendation
ap
professional
financialadvisor
advisor

17%

Less
Lesspersonal
personaldebt
debt

13%
17%

24%

12%

If money
automatically
deducted
sourcefrom
frommy
my
If money
was was
automatically
deducted
atat
source
salary
into
an an
investment
planplan
salaryand
andput
putdirectly
directly
into
investment

Don'tknow
know
Don't

India

33%

Better
knowledge
aboutinvesting
investing
Better
knowledge
about

Nothing
Nothing
gg

Asia

18%
4%
3%
3%
2%

Guaranteed returns, better knowledge and easy to understand solutions are more
Source:
Q123 to
- What,
if anything, would encourage
you to invest
of your cash
savings into
types of
investments?
likely
encourage
Indians
to more
invest
more
ofother
their
cash
savings into other investments
BASE: Asia (n= 6135) India (n= 1367)
19

Investments Other than Cash Held by Indians

70%

Life Insurance
Insurance
Life

64%

Fixed deposits
deposits (FDs)
Fixed
(FDs)

46%

Shares
Shares

33%

Equities-mutual
mutual funds
funds (Indian)
Equities(Indian)

28%

Other
insurance(ULIP,
(ULIP,Endowment
Endowment plan,
plan, others)
others)
Other
insurance
Fixed
y Plans
Plans ((FMPs)
((FMPs)
FixedMaturity
Maturity
))

27%
25%

Tax free
free bonds
bonds
Tax

22%

ETFs (Gold)
(Gold)
Liquid
Funds
Liquidmutual
mutual Funds

20%

Equities- mutual
funds
(Including
and International
Equitiesmutual
fundsfeeder
(Including
feeder and
Fund of
Funds)
International
Fund of Funds)

19%

CorporateBonds/deposits
Bonds/deposits
Corporate

18%
14%

Debtmutual
mutual Funds
Debt
Funds

6%

ETF (Others)
(Others)

7%

Other
Other
Don't know
Don't
know

1%

Among those holding investments other than cash, 70% of Indians hold life insurance
Source:
Q94 - Which of64%
the following
products
do you36%
currently hold
hold?
products,
FDs
and
shares
BASE: India (n= 1159)
MA (n= 528)
20

Preference Between Fixed Deposits/ Fixed Maturity Plans/ Liquid Funds

Total India

Liquid Funds
10%

None of these
2%
Fixed Maturity Plans
(FMP) 20%

Fixed Deposits (FDs)

69%

Base: Holders of fixed deposits, fixed maturity plans or liquid funds

Indians are more likely to invest in Fixed Deposits when seeking both safe and
consistent returns. Fixed Maturity Plans come second

Source: Q110 - You mentioned earlier that you invest in Fixed Deposits (FDs), FMPs, or liquid funds. If you have new money to invest from which you seek both safe and consistent
returns which would be your first preference?
BASE: India (n= 982)
MA (n= 459)

21

Reasons for Preferring Investments in Fixed Deposits over Fixed

Maturity Plans and Liquid Funds
68%

Fixed
FixedDeposits
Depositsare
are aa safer
safer option
option

64%

Fixed
Deposits
provide
Fixed
Deposits
provideme
meaasense
sense of
of 'guarantee'
'guarantee'

41%

Fixed
Depositsare
areaamore
moreliquid
liquid option
option
Fixed
Deposits

38%

I know
a lot
more
aboutFixed
FixedDeposits
Deposits than
than the
I know
a lot
more
about
the other
othertwo.
two

I was
advised
choosea aFixed
FixedDeposits
Deposits by someone
I was
advised
to to
choose
someone
familiar (family/
colleague)
familiarfriend/
(family/
friend/ colleague)

21%

I was
advised
to choose
a FixedDeposit
Depositby
byaaprofessional
professional
I was
advised
to choose
a Fixed
financial advisor
or planner
financial
advisor or planner

16%

15%

Investing
Investing
in FMPs
in FMPs
and
and
Liquid
LiquidFunds
Fundsisisaacomplex
complex process
process

I am
really
aware
thereare
areany
anytax
tax advantages
advantages ififII
I am
notnot
really
aware
if ifthere
invest in FMPs
or in
Liquid
Funds
invest
FMPs
or Liquid Funds

Other reason
Other
reason

Don't
know
Don't know

14%

1%

1%

Base: Holders of fixed deposits, fixed maturity plans or liquid funds who prefer to
invest in Fixed Deposits when seeking safe and consistent returns

Of those that prefer to invest in fixed deposits, the main reason is that they are seen
Source:
- Why dooption.
you prefer to invest
in Fixedalso
Deposits offer
(FDs) over a
FMPs
and Liquid of
Funds?
as aQ111
safer
They
sense
guarantee
BASE: India (n= 674)
MA (n= 303)
22

Are Indians Investing Outside India?

Total India
Don't know/ can't
recall 3%

Yes
8%

No
89%

Only 8% of Indians are investing outside of India. Indians have a significant home bias

Source: Q97 - Are you currently investing outside of India?

BASE: India (n= 1149)
MA (n= 525)

23

Summary: Asset Allocation

Indians have a high propensity to save and invest, with more than half of take home pay being
allocated to savings and investments.

Indians typically save 27% of their monthly income and invest 25%. This is much higher than the
global averages of 20% and 17% respectively.

Although cash is popular, of those who hold investments other than cash, 70% of Indians hold life
insurance products, 64% FDs and 46% hold shares.

Twice as many Indians believe cash is an essential part of a portfolio compared to globally.
globally

Guaranteed returns, better knowledge and easy to understand solutions are more likely to
encourage Indians to invest more of their cash savings into other investments.
investments

There is a significant home market bias - only 8% of Indians are investing outside of India.

24

Section 3 Preparing for Life Events

Preparing for lifes big events is a key driver of savings and investment behaviour
in India

Most Commonly Experienced Events in the Last Ten Years: Global vs India
Events experienced in last 10 years
17%

I paid
forfor
a child
totogogototoschool/
I paid
a child
school/ university
university

17%

II got
got married
married

I attended college/ university/I graduated from

I attended college/ university/I graduated from university
university

13%

23%

9%

I bought
a propertytotolet/
let/investment
investment property
property
I bought
a property

23%
13%

started a
a new
new job
IIstarted
job

11%

I Itook
break
tookan
anextended
extended career break

I had someone come to live with me in later life (e.g.

I had someone come to live with me in later life (e.g. parent, child)
parent, child)

9%

I experienced
a prolongedperiod
period of
of ill-health
ill-health
I experienced
a prolonged

12%
13%
12%

I retired
work
I retiredfrom
fromall
all paid
paid work

received an
an inheritance
inheritance
I Ireceived
I downsizedmy
myhome
hometo
togive
give me
me extra
extra money
I downsized
money
I got
divorced
separatedfrom
frommy
mylong-term
long-term partner
partner
I got
divorced
oror
separated

5%

of thepartner
above
I lost a spouse/I lost None
a spouse/

5%
5%
4%

26%
23%

11%

I Istarted
started aa business
business

32%
28%

18%

IIstarted
started a family
family

I lost a spouse/I lostNone

a spouse/
of thepartner
above

35%
24%

I Ibought
home
bought my
my own home

18%
17%
16%
16%

GLOBAL
India

8%
9%
8%
9%
10%
17%

Indians have a wide range of life experiences; paying for a child to go to school and
buying a home are the most commonly experienced events in the last ten years

Source: Q28 - Which of the following events, if any, have you personally experienced in the past 10 years?
Q29 - Which, if any, of these events have you personally experienced most recently?
BASE: Global (n=27500) India (n= 1500)

26

Steps Taken to Prepare for the Financial Implications of Major Life Events
I bought my own home

I didn't
dodoanything
I didn't
anything

I started a business

3%

3%

I took professional advice from an

I took professional

accountant/lawyer
t advice
t/l

24%

I took outI an
insurance
product or
took
out an insurance

similar

21%

2%

13%

10%

14%

17%
31%

5%

4%

12%

19%
33%

29%

14%

12%

16%

I adjusted where my savings and

I adjusted where my
investments are placed

17%

32%

15%

20%

35%

7%

28%

11%

I decided to sell all or part of my

I decided to sellinvestments
all or part
I decided to take out a life insurance
I decided to take out a plan
life

27%

5%

20%

I decided
totosave
I decided
saveless
less

28%

12%

5%

41%

24%
32%

17%

7%

I took
out
I took
outa aloan
loan

21%

26%

13%

I took the decision

invest more
I took thetodecision
to

14%

20%

31%

24%

10%

36%

25%

I took the decision to make long-term

I took the decision to make
investments

31%

28%

21%

I made
I madea a'to
'todo'
do'list
list

14%

41%

20%

I decided to put more aside in my

I decided to putsavings
more

11%

9%

33%

I searched
online for

I searched online
for planning
tips

Retired from all paid work

6%

8%

20%

22%

spoke
to family
and
I spoke to familyI and
friends
for advice

Something
Somethingelse
else

8%

15%

I took professional advice from a

I took professional

financialadvice
advisor

I panicked
I panicked

Paid for child schooling

7%
42%

2%

43%
6%

Indians on the whole undertake a wide range of steps to prepare for the financial
Source:
Q30 - Thinking specifically
about (...), what
steps
if any did you take, to prepare for the financial implications of the event?
implications
of major
life
events
27

Top Financial Priorities for Indians

Saving/investing
to ensureto
that
I can live
throughout
Saving/investing
ensure
thatcomfortably
I can live comfortably
retirement
throughout retirement

46%
45%

Growing my
Growing
my wealth
wealth
Long-termhealthcare/Paying
healthcare/Paying for
care/health
care
for for
me me
or
Long-term
forlong
longterm
term
care/health
care
spouse
or spouse

42%
39%

Financing
my
child/children's education
Financing
my
child/children's
education
Being
ableable
to earn
or draw
anan
income
from
Being
to earn
or draw
income
frommy
mysavings
savings // investments
investments

33%
27%

Getting aa better
better paid
Getting
paid job
job
Child's
marriage
Child's marriage

26%
24%

Saving
deposit/down
down payment
payment for
Saving
forfor
aa
deposit/
for aa home
home

22%

Preserving/holding
holding on
on to
to my
Preserving/
my wealth
wealth

22%

Starting/growing
growingmy
my own
own business
Starting/
business

20%

Providing
support
elderly
Providing
P
idi
financial
fi financial
i l support
t to
ttoelderly
ld l relatives
relatives
l ti

18%

Paying
creditcards
cards or
or other
other debts
Paying
offoffcredit
debts
Leaving an inheritance
inheritance
Leaving

15%

Paying
mymortgage
mortgageon
onmy
my only/
only/ main
Paying
offoff
my
main home
home

15%

Paying
loans
Payingoff
off student
student loans
None
of the
the above
above
None of

8%
1%

The top financial priorities for Indians are saving money, growing wealth, saving/investing
Source:
Q13 - People
ages sometimes have
different financial priorities.
if any, of
the following
currentlyhealth
important financial
enough
forof adifferent
comfortable
retirement
and Which,
paying
for
longareterm
carepriorities for you...?
BASE: India (n= 1500)
MA (n= 601)
28

What Advice Would Indians Give to Their Younger Self?

54%

India

42%

Save
Savemore
more generally
generally

54%
37%

Spend
less
Spend less

41%
32%

Think
longer-term
with
my
savings
Think
longer-term
with
my
savingsand
andinvestments
investments

44%
29%
33%

Pay
Payoff
offdebts
debts sooner
sooner

26%

Make
my retirement
saving
a priority
Make
my retirement
saving
a priorityover
overother
other things
things

35%
24%

Don't
intomy
mysavings
savings so
so often
often
Don't
dipdip
into

15%
17%

Stay
in in
the
Stay
theworkforce
workforce for
for longer
longer

30%
17%

Use
professionalfinancial
financial advice
advice
Use
professional

32%
16%

Keep
less
moneyinincash
cashand
andinvest
invest more
Keep
less
money
more

36%
15%

Investininthe
thestock
stock market
market
Invest

28%
15%

Take
fewer
risks
with
my
savings
Take
fewer
risks
with
my
savingsand
andinvestments
investments
NothingI would
notnot
give
my
NothingI would
give
my'younger
'youngerself'
self' any
any advice
advice

GLOBAL

45%

Start
saving
retirementfrom
from aa younger
younger age
Start
saving
forfor
retirement
age

32%
10%
3%

Start saving from a younger age, save more generally and think longer term are the top
Source:
Q183 - of
If youadvice
were talking to
your 'younger would
self' about saving
and to
investing
what advice,
if any, would
you give yourself?
pieces
Indians
give
their
younger
self
BASE: Global (n=27500) India (n= 1500)
29

Saving For Retirement: Global vs India

GLOBAL
56%

amconcerned
concernedthat
that
children
/ future
generations
will
be
II am
mymy
children
/ future
generations
will be
less
lessforable
save for their retirement
able to save
theirtoretirement

India

59%

51%
I amI concerned
about
outliving
retirement
am concerned
about
outlivingmy
mysavings
savings in
in retirement
63%

50%
I understand
how
much
I understand
how
muchI need
I needtotosave
savefor
for my
my retirement
retirement
75%

38%

I just can't imagine that I'll ever be able to afford to retire fully/I will
I will
be able
to retire
afford to fully retire
never be
ablenever
to afford
to fully

I am
confident
savings
investments
will ensure
that I
I am
confident
mymy
savings
and and
investments
will ensure
that I enjoy
a comfortable retirement
a comfortableenjoy
retirement

51%

37%
67%

34%
I am well prepared financially for retirement
I am well prepared financially for retirement

59%

The majority of Indians (75%) agree that they understand how much they need to save for
retirement. 67% are confident that their savings and investments will ensure they enjoy a
Source: Q169SUM1 - Sumary Table %Agree - To what extent do you agree or disagree with the following statements when thinking about your own retirement?
comfortable
BASE:
Global (n=27500) retirement
India (n= 1500)
30

Proportion of Salary Needed to Save in Order to Fund a Comfortable

Retirement
Total India
Nothing
Dont know 1%
3%

Up to 5%
7%

More than 20%

19%
5% - 10%
22%

15% - 20%
21%

10% - 15%
27%

Base: not fully retired

Two-thirds of Indians (66%) say that they need to save more than 10% of their salary in order to
Source:
- When thinking of saving
for a comfortable retirement, what proportion of your salary or wages do you think you need to save in order to fund a comfortable retirement?
fundQ149
a comfortable
retirement

BASE: India (n= 1429)

MA (n= 577)

31

Summary: Preparing for Life Events

The top financial priorities for Indians are saving money (60%), saving/investing enough to live
comfortably throughout retirement (46%), and growing wealth (45%).
Indians on the whole undertake a wide range of steps to prepare for the financial implications of
major life events speaking to family and friends plays a significant role.
Two-thirds of Indians ((66%)) say
y that they
y need to save more than 10% of their salary
y in order to fund
a comfortable retirement.
27% believe they should save between 10% and 15%. 21% believe they should save between 15%
and 20% and19% believe they should save more than 20% .
Indians are also taking steps to prepare - the majority of Indians (75%) agree that they understand
how much they need to save for retirement. 67% are confident that their savings and investments
will ensure they enjoy a comfortable retirement.
Start saving from a younger age, save more generally and think longer term are the top pieces of
advice Indians would give to their younger self.

32

Indians have taken steps to prepare for retirement the majority have started to
save specifically for it and most have a clear idea of the amount they should

Section 4 Use of Financial Advice

When it comes to financial advice,, satisfaction and reliance levels are high,
g , and the
advised investor feels better prepared

Use of Financial Intermediaries (for Advice/ Transactions)

No, never
used
42% 42%

48% 47%
53%

54%

50%
56%

60%

47%
53% 55%

51%

54%
62%

36%

37%

No, although
I have in the
past

51%
57% 60% 56%

56%
62%

63%

Yes, use now

81%

16%

23%
19% 27%

14%
17%

11%
21%

22%

27%
25%

17%
27%

31% 28%

23%

19%

35%
19% 18%

22%
19%

29%
25%
42%

39%
27% 29%

25%

30% 25% 18%

26% 24%
16% 17%

19%

16% 18%

23% 22%

40%

41%

36% 37%
11%

18%

15% 13%

8%

A large proportion of Indians are using financial intermediaries

Source: Q36 - Do you currently use the services of a professional financial advisor?
BASE: Global (n=27500) India (n= 1500)

34

Payment for Financial Advice / Value Provided by Advisors

Payment for Financial Advice

Value Provided by Advisors

Poor value
0%

Do not know 1%

Dont know
0%

Acceptable
value 12%

Do not pay a
Fee 21%

Excellent value
40%

Advised
investors pay
a fee 78%

Good value
48%

Base: advised investors who pay a fee for either advice or the transaction

Of those in India that pay a service or transaction fee, 48% believe the advisor provides good
Source:
Q51 -40%
Based on
what you believe
you provide
pay, would youexcellent
say your professional
financial advisor (INDIA: or planner) provides
value.
believe
they
value

BASE: India (n= 484)

MA (n= 258)

35

Satisfaction with Financial Advice Received: Global vs India

Global

India

Somewhat
dissatisfied
6%

Somewhat
dissatisfied
2%

Very
dissatisfied 1%

Very
satisfied 42%

Somewhat
satisfied
ti fi d 51%

Somewhat
satisfied
f
43%

Very
satisfied
55%

Satisfaction levels are higher than the global average, with 55% very satisfied with the service they
receive from a professional financial advisor

Source: Q38 - Overall, how satisfied are you with the service you receive from your professional financial advisor? If you use more than one, please answer based on your primary
advisor for investment decisions.
BASE: Global (n=6834)
India (n= 617)
MA (n= 307)

36

Reliance on Financial Advisors For Investment Decisions: Global vs India

Global

India

I DO NOT rely on an
advisor 7%
SOME of my
investment
decisions
30%

I DO NOT rely on an
advisor 3%
ALL of my
investment
decisions
22%

MOST of my
investment
decisions
41%

SOME of my
investment
decisions
19%

MOST of my
investment
decisions
38%

ALL of my
investment
decisions
dec
so s
39%

Reliance levels are also high, with 39% relying on financial advisors for all of their investment
decisions

Source: Q41 - When making investment decisions, to what extent do you rely on your professional financial advisor? A financial advisor could include an advisor at your
bank, insurance company, a broker or an independent advisor.
BASE: Global (n=6834)
India (n= 617)
MA (n= 307)

37

Probability of Using a Financial Advisor if they Charged a Nominal Fee

Total India
Dont know
3%
No
14%

Yes- definitely
29%

Yes- probably/
possibly
54%

Among the advised who dont pay a fee, 45% would probably still use their financial advisor if they
Source:
Q52 - If your
professional financial
charged
a nominal fee still
would you
still use
him or her?
charged
a nominal
fee.advisor
29%or planner
would
definitely
use
them
BASE: India (n= 133)

MA (n= 49)

38

Main Topics for Discussion with Professional Financial Advisors

45%

Seeking
ideas
Seekingnew
newinvestment
investment ideas

43%

Minimizing
Minimizingrisk
riskwhen
when investing
investing
Better
management
of of
cash
ininmy
Better
management
cash
myinvestment
investment portfolio
portfolio

41%
39%

Developing
my
retirementplan/
plan/ retirement
retirement needs
Developing
my
retirement
needs
Protecting
my my
savings
and
investments
Protecting
savings
and
investmentsagainst
against inflation
inflation

38%

Saving
enough
money
forfor
my
children's
and
Saving
enough
money
my
children'supbringing
upbringing and
education
ed cation
education

38%

Minimizing
tax liability/Minimizing
my taxreducing
liability/
Minimizing
my taxmy
liability/Minimizing
my tax liability/
reducing my taxes
my taxes

37%

Market
volatility/How
dealwith
withMarket
Market volatility
volatility
Market
volatility/How
totodeal

34%

Managingmy
myasset
asset allocation
allocation
Managing

34%

to select
investments
thatprovide
provideme
me an
an income
income stream
HowHow
to select
investments
that
stream
from dividends or
interest
from
dividends or interest

33%

Protecting
investments
fromunforeseen
unforeseenglobal/
global/ domestic
domestic
Protecting
my my
investments
from
economic events
economic events

32%

Developing
a comprehensive
financial
my assets
assets
Developing
a comprehensive
financialplan
planfor
for all
all my

31%

None of the
None
the above
above

1%

The main topics for discussion with professional financial advisors are seeking new investment
Source:
Q46 -minimising
Which, if any, of the following
discussed with
your professional financial
advisor (INDIA:
or planner) in the past
year?
ideas,
risk, topics
andhave
theyoubetter
management
of cash
in investment
portfolios
BASE: India (n= 617)

MA (n= 307)

39

Summary: Use of Financial Advice

A large proportion of Indians are in touch with financial intermediaries satisfaction and reliance
levels are high.

41% are currently using an advisor, 23% arent currently but have used one in the past, and 36%
have never used one.

Of those who use advisors,

advisors 55% are very satisfied and 43% somewhat satisfied.
satisfied Only 2% are
somewhat dissatisfied. Reliance levels are also high, with 39% relying on financial advisors for all
of their investment decisions.

The main topics for discussion with professional financial advisors are seeking new investment
ideas, minimising risk, and the better management of cash in investment portfolios.

Those who dont currently

yp
pay
y a fee for advice would likely
y still seek the services of an advisor
even if a fee was introduced.

40

In Summary..

Indians are very positive about their financial future, feel in control of their finances and
are confident in making saving and investment decisions

Over half of Indians are more interested in investing in equities now than they were five
years ago

Indians are also much more likely to increase their holdings of equities over the next 12
months than the rest of the world

Indians have a high propensity to save and invest, with more than half of take home pay
being allocated to savings and investments

Th
There
i a significant
is
i ifi
t home
h
market
k t bias
bi - only
l 8% off Indians
I di
are investing
i
ti outside
t id off India
I di

Start saving from a younger age, save more generally and think longer term are the top
pieces of advice Indians would give to their younger self

I
Investors
t
are seeking
ki more financial
fi
i l advice.
d i
S ti f ti and
Satisfaction
d reliance
li
l
levels
l are high
hi h

41