Mutual Fund SIPs Top Investment Preference For Millennials, Digital Gold Comes Second: Survey

Not crypto or FDs. SIPs (Systematic Investment Plans) have turned out to be the most preferred investment avenue among millennials, according to a survey conducted by fintech company CASHe.

For the uninitiated, SIPs inculcate financial discipline by letting you regularly invest a fixed amount in mutual funds at a preset date and frequency.

As far as millennials¡¯ preference for ongoing investments is concerned, the survey mentioned that over 47% of respondents expressed an interest in SIPs/recurring deposits as their preferred investment pattern. Millennials have also turned to digital alternatives and prefer to do their investments themselves.

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In terms of preference for new-age alternative asset classes, digital gold topped the charts with more than 33% of the respondents voting for it. It clearly showcased millennial inclination towards gold as a stable asset class and a profitable instrument offering long-term gains. Here it's noteworthy that India's market regulator SEBI banned the purchase of digital gold from stockbrokers in September 2021. But those wishing to buy or sell digital gold can continue to do so through other sources such as mobile wallets, investment platforms etc.

Coming back to millennials' preference, digital gold was followed by cryptocurrency (29%), fractional ownership (17%), P2P lending (12%), and US equity investment (9%), according to a TOI report mentioning details of the survey. Also, more than 56% of millennials invested in tax saving plans, while the rest were supposedly unaware.

According to the survey, more than 43% of the respondents across the country stated they started making financial decisions independently between the ages of 21-25 years.

The pan-India survey was conducted among more than 20,000 CASHe users. At least 41% have set aside a budget of anywhere between 10-20% of their annual income as savings but at least 30% set aside less than 10% of their annual income as savings.

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There is also a growing consciousness to start saving early for their post-retirement life. More than 34% said they were highly conscious of the matter and have started saving already while 48% of the respondents said they have not yet factored in retirement planning. 23% aim to kick start retirement planning soon.

Also Read: Which Is Better For Mutual Fund, Lumpsum Or SIP?

Medical Emergency Top Reason For Loans

According to the report, medical emergency (36%) was the top reason for millennials availing loans in 2022. This was followed by unplanned expenditure and education accounting for 19% and 14%, respectively.

The survey also highlighted that banks continue to lead the stride as the most preferred go-to lending avenue among millennials. 41% of millennials secured loans from a bank whereas 35% of the borrowers opted for digital lending platforms because of their relaxed eligibility criteria, bias-free processes, and attractive interest rates, the report mentioned.

Also Read: 7 Benefits Of Buying Health Insurance Right Away

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