Most Indian investors choose equities after 35 years of age; 60% adopt long-term approach, reveals ‘Kundli’ survey
3 min read 07 Jun 2023, 08:06 PM ISTAs investors age, their investment journey becomes more fulfilling, particularly after 35 years of age. The older Indian investors are keen on upgrading their lifestyle through their investment endeavors, said the Indian Investor Kundli survey.
PremiumIndian investors tend to show a strong inclination towards investing directly in equities once they reach the age of 35 and more than 50 per cent of these investors hail from non-metro cities, indicating a growing interest in financial markets beyond the major urban centers, according to the first investor survey titled 'The Indian Investor Kundli' conducted by equity investment advisory brand 'Research & Ranking'.
The category of ‘metro cities’ included both the conventional metro cities such as Mumbai, Chennai, Kolkata, and Delhi, as well as the new age metro cities like Ahmedabad, Pune, Bengaluru, and Hyderabad, according to the survey. At 52 per cent, more than half of Indian investors hailed from the non-metro cities.
As investors age, their investment journey becomes more fulfilling, particularly after 35 years of age. The older Indian investors are keen on upgrading their lifestyle through their investment endeavors, said the Indian Investor Kundli survey. The survey also revealed that with increasing age, investors tend to become more comfortable with a lump sum investment approach, reflecting higher confidence and risk tolerance.
Here are some of the key findings of the Indian Investor Kundli survey:
-The survey also showed that 50 per cent of Indian investors have not seen a complete business cycle. Less than four years of investing experience is held by 50 per cent of investors, with 12 per cent falling under the category of having less than one year of experience.
-As much as 58 per cent of respondents - almost three out of five investors, identified themselves as long-term investors, committed to holding their stocks for a minimum of three years.
-As per the survey, 57 per cent of investors seize the moment and make a bold statement by investing a lump sum in equities, while 43 per cent prefer to take the measured and disciplined route of investing through SIP, steadily building their portfolio over time.
-Around 31 per cent of respondents, which means one out of three investors, boast of an investible surplus exceeding ₹25 lakhs and 50 per cent of them are planning to invest ₹6 lakh and above in FY24.
-On the performance front, around 30 per cent of investors have underperformed the index, while a considerable 27 per cent remained uncertain about their Compound Annual Growth Rate (CAGR). The CAGR tends to improve with age, indicating the potential for enhanced returns over time, the survey said.
-56 per cent investors confessed to having achieved a CAGR of less than 10 per cent or being uncertain about their CAGR performance. NIFTY delivered 11.2 per cent CAGR between April 2, 2018 and March 31, 2023. This means almost one out of three investors have admitted that they underperformed the index.
-Investors in metro cities consistently boast of larger portfolios compared to their counterparts from non-metros. This striking trend becomes evident across various portfolio size ranges, encompassing the brackets of ₹10 lakhs to ₹25 lakhs, ₹25 lakhs to ₹1 crore, and even beyond ₹1 crore.
-Investors from metro cities also displayed a heightened bullish sentiment towards the stock market in FY24. They also exhibit a greater inclination towards investing for early retirement and building a robust retirement corpus, distinguishing them from their counterparts in non-metros who are keen to invest for enjoying lifestyle upgrades or buying a house.
-The process of wealth creation undergoes a substantial acceleration primarily during the age range of 35 to 49, said the survey. There is a notable surge in the number of investors with portfolios surpassing the ₹1 crore mark within the 50-64 and 65+ age groups
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