According to the report, 'How Households Save and Invest:" Evidence from National Council of Applied Economic Research (NCAER) Household Survey released recently by the Indian share market regulator SEBI (Securities and Exchange Board of India), the participation by Indian households in the securities market continues to remain low.
2.45 crore Share Investors..!
Only 11% that is, 2.45 crore investors of the Indian households surveyed made investments in the securities market.
It was also found that a chunk of the investors were urban Indians, what with 20% of the urban households invested in markets as against 6%t in rural India.
For the purpose of the survey, a sample of 38,000 households in 44 cities and 40 villages across the states was considered.
Some Interesting Findings - How Households Save and Invest
# Mutual funds are the most preferred route for market investments, what with about 43% of the respondents taking to it.
# Exposure to secondary market investments came in second, preferred by 22% of the households.
# About 15% preferred bonds, probably owing to the instrument's steady returns promise vis-Ã -vis a volatile stock market.
# Initial public offerings garnered the interest of only 8.5% households.
# As for IPO investing, preference was driven more by gender bias, as male investors were seen taking to it more than their female counterparts.
# The attraction for mutual funds was higher among rural households, what with 46% of them choosing MFs as against 41% of urban investors.
# Villages close to urban centres significantly participated in financial markets, particularly in the mutual funds.
# Households with higher level of education tended to invest more. For instance, as against the 22% national average, nearly 26% of households with more than 15 years of education preferred to invest in secondary markets.
# Households with a higher level of education opted for a longer time horizon for their investments.
# More than half the Indian households, Nearly 54% treat banks and insurance schemes as their primary choice of savings, reflecting the need to provide for intra-household financial security.
# There is also a significant magnitude of small savers among all households, urban as well as rural. About 11 to 25% of all households save in post office savings schemes.
# The level of education played a crucial role. It was found that post-office savings schemes were most preferred by whose level of education was between 10 and 15 years.
# Education played a significant role in influencing risk preferences also. For instance, the degree of risk was the highest among investors with more than 15 years of schooling.
2.45 crore Share Investors..!
Only 11% that is, 2.45 crore investors of the Indian households surveyed made investments in the securities market.
It was also found that a chunk of the investors were urban Indians, what with 20% of the urban households invested in markets as against 6%t in rural India.
For the purpose of the survey, a sample of 38,000 households in 44 cities and 40 villages across the states was considered.
Some Interesting Findings - How Households Save and Invest
# Mutual funds are the most preferred route for market investments, what with about 43% of the respondents taking to it.
# Exposure to secondary market investments came in second, preferred by 22% of the households.
# About 15% preferred bonds, probably owing to the instrument's steady returns promise vis-Ã -vis a volatile stock market.
# Initial public offerings garnered the interest of only 8.5% households.
# As for IPO investing, preference was driven more by gender bias, as male investors were seen taking to it more than their female counterparts.
# The attraction for mutual funds was higher among rural households, what with 46% of them choosing MFs as against 41% of urban investors.
# Villages close to urban centres significantly participated in financial markets, particularly in the mutual funds.
# Households with higher level of education tended to invest more. For instance, as against the 22% national average, nearly 26% of households with more than 15 years of education preferred to invest in secondary markets.
# Households with a higher level of education opted for a longer time horizon for their investments.
# More than half the Indian households, Nearly 54% treat banks and insurance schemes as their primary choice of savings, reflecting the need to provide for intra-household financial security.
# There is also a significant magnitude of small savers among all households, urban as well as rural. About 11 to 25% of all households save in post office savings schemes.
# The level of education played a crucial role. It was found that post-office savings schemes were most preferred by whose level of education was between 10 and 15 years.
# Education played a significant role in influencing risk preferences also. For instance, the degree of risk was the highest among investors with more than 15 years of schooling.
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