Indian have the lowest appetite for risk among the Asia-Pacific markets said the ?Swiss Re Survey of Risk Appetite: Asia-Pacific 2009′ on the risk appetite of Asia-Pacific?s 20 to 40 year-olds. The survey was conducted during the first quarter of 2009, among 900 respondents, between the age of 20 and 40, in the urban areas of Mumbai, Delhi and Bangalore.
The consumer appetite for risk index (CAFRI) value for India stood at a value of 41.4 as compared to its counterparts China, whose CAFRI value stood at 43.4, and Australia at a CAFRI value of 49. India?s ultra-conservative ranking in this study is attributable mainly to the respondents? low appetite for career and finance risks, noted Clarence Wong, director, clients markets, Asia at Swiss Re.
Although consumers in India are aware of the need to plan early for their financial futures, they are the most unwilling group among all markets surveyed to use a professional financial planner or investment adviser.
However, 90% of Indians surveyed said they think a lot about how to ensure their future financial security. ?To a certain extent, the reluctance of Indian consumers to use professional advisory services shows that the concept of financial planning itself, in contrast to mere savings or investments, is a notion that has only just begun to take root in that country,? said Wong.
The survey also found that Indians are also Asia?s least willing to take career risks, with stability a key factor for employers or job seekers. About 75% of Indian respondents, the highest percentage in Asia, said they prefer to work for a large and established company rather than move to a smaller company even if it offers them a higher salary or better growth prospects. Consumers in India are also among the least likely in Asia to take risks with their health, according to the survey, which showed that with more than 60% of Indian respondents professing to exercise regularly to stay fit and plan their diet around healthier foods.
Interestingly, despite their normally conservative attitude, the survey found 20 to 40 year-olds in India to be more willing to take lifestyle risks than many of their counterparts in Asia, with about half of Indian respondents saying they would pursue a sport or an activity for fun, even if some people think it?s dangerous.