Indian investors more confident on meeting daily financial needs: Survey

New Delhi, Mar 26 (PTI) Indian investors show greater confidence towards meeting daily financial needs and using AI tools for their investment needs, a global survey said on Wednesday.

At the same time, Indian investors also struggle more to meet their debts and liabilities, according to the World Economic Forum’s Global Retail Investor Outlook 2025.

The report, developed in collaboration with Robinhood Markets and Boston Consulting Group, showed a notable shift in investment patterns among generations, with 30 per cent of Gen-Z (18-27 years age group) globally beginning their investment journeys in university or early adulthood.

This was significantly higher than Millennials (28-47 years) at 15 per cent, Gen X (44-59 years age group) at 9 per cent, and Baby Boomers (60 years) at 6 per cent.

On technological impact, the study found 41 per cent of Gen-Z and Millennials are open to AI managing their investments, highlighting a substantial pivot towards tech-driven financial services, compared to only 14 per cent of Baby Boomers.

By the time they enter the workforce, 86 per cent of Gen-Z have learned about personal investing versus 47 per cent of Boomers, underscoring a generational transformation in financial habits.

The study surveyed over 13,000 respondents across 13 countries: Australia, Brazil, China, France, Germany, India, Ireland, Japan, Singapore, South Africa, United Arab Emirates, UK and US.

On confidence in meeting daily financial needs, Indians came on top with 95 per cent of respondents, followed by China at 94 per cent. Japan scored the lowest at 67 per cent.

On their ability to handle major unexpected expenses, China scored the most (89 per cent), followed by India at 86 per cent, at the second place.

On their concern about outliving their savings, Singapore scored the most (56 per cent), while India was at sixth place (49 per cent).

At the same time, 51 per cent of Indian respondents said they struggle to meet their debts and liabilities — more than any other country covered in the survey.

On trusting AI with their financial information, using AI chatbots and allowing an AI assistant to manage their investments, Indians scored the most at 62 per cent, 25 per cent and 58 per cent, respectively.

“Emerging economy investors are growing at a rapid pace, buoyed by technological innovation and thriving domestic growth,” the report said while citing India having over 120 million individuals who engaged in capital markets for the first time between 2019 and 2023.

It said there has been active growth and interest in capital markets in India, but gaps in banking infrastructure limit the full potential of the country’s retail investing landscape.

The report also talked about a significant opportunity for wealth accumulation and growth in the Indian stock market, with the benchmark Nifty 50 index doubling from 2019 to 2024 – outpacing the S&P 500, Nikkei 225 and Shanghai Composite indices.

The survey found that retail investors increasingly view cryptocurrency as an easier investment option to understand than traditional investments like ETFs, mutual funds, bonds, and stocks.

While 29 per cent avoid stocks due to a lack of understanding, only 24 per cent say the same about crypto.

Among investors under 44 who hold cryptocurrencies, more than half allocated at least a third of their portfolio to it.

It also found that financial priorities are shifting towards short-term needs.

In 2024, 51 per cent of investors prioritised emergency savings, up from 41 per cent in 2022, while those focused on having enough to retire dropped from 48 per cent to 42 per cent.

For non-investors, the biggest barriers were lack of funds and fear of financial loss. than half said they would have felt more confident investing if they had learned about it in primary school.

In addition to younger investors being more open to AI-driven financial advice, the survey also found that 48 per cent of individuals from emerging markets across all ages would allow an AI assistant to manage their investments.