A growing number of young adults in India are choosing to invest directly in equity markets rather than through mutual funds, according to a report by Fin One, an initiative of fintech brokerage Angel One.
The report highlighted that 93% of young adults are regular savers, with most setting aside 20-30% of their monthly income.
Equities have become the top investment choice, with 45% of respondents preferring stocks over more traditional investments like fixed deposits or gold.
Currently, 58% of young Indian investors are active in stock investments, compared to 39% who favour mutual funds. Safer options, such as fixed deposits (22%) and recurring deposits (26%), show relatively lower uptake among young adults, the report noted.
This trend points to a balanced approach between seeking high returns and maintaining stable savings.
The findings are based on data from 1,600 young adults across 13 cities in India, examining four main areas: saving behaviour, investment preferences, financial literacy, and the use of technology and financial tools.
The report also highlighted the significant role of technology, with 68% of respondents using automated savings tools regularly, showcasing the impact of digital platforms on the financial practices of India's youth.
Despite their disciplined saving habits, 85% of young Indians reported that the high cost of living, particularly expenses related to food, utilities, and transportation, remains a significant obstacle to saving.
The report stated that rising living costs are a pressing challenge for the younger generation in India.
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