Covid has made creating emergency corpus top financial goal for Indians: survey1 min read . Updated: 28 Oct 2021, 02:03 PM IST
- Every one in three respondents said financial health was their biggest stressor as covid-19 led to pay cuts and layoffs
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Covid-19 has been a catalyst in changing people’s attitude towards money as over 80% respondents to a survey conducted by Scripbox said that the pandemic had prompted them to course-correct their personal finances.
Every one in three respondents said financial health was their biggest stressor as covid-19 led to pay cuts and layoffs. Financial health was a bigger stressor than physical health and relationships, reported the respondents, and covid-19 has been a wake-up call for them to get their personal finances in order.
The survey received 650 responses with equal representation from women and men.
Creating an emergency fund has emerged as the top financial goal for Indians, as per the survey findings, as the economic uncertainty caused by the pandemic brought home the importance for saving for contingencies.
As for other goals, 34% male respondents picked healthcare as their next important financial goal, the survey showed.
Compared with pre-pandemic time, people have started saving and investing more, the survey revealed. About 51% respondents said they are saving more than before, while 36% respondents reported to be investing more towards wealth creation.
“The findings of this survey are profound and encouraging," said Atul Shinghal, founder and chief executive officer at Scripbox. “Our survey respondents confirm that besides saving more, and investing for wealth creation, reducing discretionary spending and creating an emergency fund are what they are paying more attention to, to be better prepared in the new normal."
Preferred choice of savings instruments was fixed deposits (FDs) and savings accounts, as 53% respondents said they park their excess money in savings account, whereas 41% put it in FDs and recurring deposits. As for investment options, 37% respondents prefer mutual funds as their number one investment choice, followed by stocks at 24%. Cryptocurrencies is a preferred choice for 14% respondents.
“While traditional means of saving are still popular, it is heartening to see an increased preference for robust investment options such as mutual funds over trading," said Shinghal.
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