The Ameriprise India Financial Intelligence Index Survey

wealthymattersIn this survey,an early start, goal-based planning and willingness to seek professional advice have made Mumbai investors the most financially intelligent in the country. Mumbai investors scored 5.8 on a scale of 10, the highest among the six cities, in this study conducted by TNS India on behalf of financial planning firm Ameriprise India. Delhi ranked second on the Financial Intelligence Index with a score of 4.5, followed by Hyderabad, Pune, Bengaluru and Chennai . The study gave equal weightage to five parameters: the age at which you start investing, portfolio diversification, long-term horizon, goal-based investment and seeking professional help. Nearly 700 upwardly-mobile investors with an annual household income of 12.5 lakh and in the age group of 28-45 years responded to the survey.
According to the survey report,there are potential areas of improvement across these cities. Mumbai investors need to diversify their portfolio more, Delhi and Hyderabad should start investing earlier, Pune should focus on goal-based investing while Bengaluru and Chennai would do well with more professional advice.
The survey also shows that Indian investors are waking up to the need for retirement planning.One in four Indian investors say that retirement planning is their top goal today. A year back, only one in 10 did so. The trend is most pronounced in Bengaluru, where 27% of the respondents listed retirement as their top goal, up from only 7% in 2012. In Mumbai too, the percentage of respondents giving primacy to retirement rose from 6% in 2012 to 26% now.
Interestingly, investors are now giving priority to retirement planning over other goals, such as going on a vacation or buying a car. In Delhi, the largest car market in the country, only 14% respondents have listed buying a car as their top financial goal this year, down from 30% in 2012. In some cities, such as Chennai and Bengaluru, some investors have even junked plans to invest in a second house. However, it’s not clear whether these shifts in priorities were due to a greater emphasis on retirement planning or on other factors.
A key finding of the study is that single women tend to be more focused when managing their investments. They seek guidance from parents, friends, professionals and other quarters and are more financially confident. But, this changes once they get married. After marriage, women no longer seek outside guidance on financial matters and leave the decisions to their husbands. The study found that 72% of married women thought they would make as good or better investors than their husbands but don’t assert themselves to maintain peace in the family.

About Keerthika Singaravel

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