How young Indians are saving and investing in 2024: Stocks surge ahead of Mutual Funds as top investment choice | Mint

Fin One, a digital-first project by Angel One Limited, has provided insightful information about the changing financial habits of Gen Z and Millennials in India. It has unveiled its Fin One: Young Indians’ Saving Habits Outlook 2024, offering valuable insights into the evolving financial behaviours of Millennials and Gen Z across India. According to a data compiled by top research firm Nielsen, 93% of young adults regularly save money, with many reserving 20–30% of their monthly income for future financial objectives. Remarkably, 45% of respondents said that stocks were their preferred investment choice over more conventional options like gold and fixed deposits. The paper examines important topics like saving behavior, investment preferences, financial literacy, and the growing influence of digital platforms on financial habits, using data from more than 1,600 young Indians in 13 locations.

“As India’s youth increasingly turn to the internet for financial guidance, we are witnessing a growing appetite for financial awareness and education among Millennials and Gen Z. YouTube has become central to this shift, with over 62% of young investors relying on it as a primary source of financial learning. In today’s digital age, with rising cyber threats and evolving financial landscapes, it is more important than ever for young adults to build a strong foundation in financial literacy. Saving and investing are essential life skills and key opportunities for long-term wealth creation. At Fin One, we are committed to empowering India’s younger generation with the knowledge and tools they need to make informed financial decisions and secure their financial future.” added Paarth Dhar, Vice President of Angel One.

Key insights from the report include:

Consistent Savings Practices:

A remarkable 93% of respondents identify as consistent savers, with the majority setting aside 20-30% of their monthly income for future financial goals. This reflects a growing culture of financial discipline, especially in the 22-25 age group, as young adults start their financial journey.

Investment Preferences:

58% of young Indian investors currently invest in stocks, while 39% favour mutual funds. Safer options like fixed deposits (22%) and recurring deposits (26%) see relatively lower adoption. This indicates a balanced approach between high returns and stable savings among the youth.

72% of 18-21-year-olds prefer stocks over options like Fixed Deposits, Mutual Funds and Gold.

With 62%, YouTube is a primary source of education for savings and financial planning among those surveyed. Family and friends remain the secondary source of financial education for 52% of youth, surpassing popular finance influencers.

Barriers to Savings:

Despite disciplined saving habits, 85% of young Indians cite the high cost of living—particularly food, utilities and transportation—as the most significant barrier to saving. This indicates rising living costs are a critical challenge for India’s youth.

Technology:

68% of respondents use automated savings features and mobile apps to manage their finances.

Financial Literacy:

71% of respondents consider themselves proficient in financial literacy.

Read all our personal finance stories here

Disclaimer: The views and recommendations made above are those of individual analysts, and not of Mint. We advise investors to check with certified experts before taking any investment decisions.