Investing through Systematic Investment Plans (SIPs) or recurring deposits has become the most preferred investment option for millennials, according to a survey. ‘The Financially Independent Millennial’ report 2022 by CASHe released today (16 August 2022) said that as millennials are evolving and growing to take on additional financial commitments, there is a growing realisation among them for responsible investing.
More than 47% of respondents, who participated in the survey, expressed their penchant for SIP/recurring deposits as their preferred investment style followed by 31% of respondents who favoured goal-based savings.
Even as millennials may not have much to put aside, the study indicates that they are aiming to adopt smart savings habits. Also, their inclination towards SIP and goal-based investment plans implies their commitment to regular savings.
How much do millennials invest?
The study indicated that a vast majority of the respondents (41%) set aside a budget of anywhere between 10-20% of their annual income as savings. The report shows a growing trend of millennials adopting responsible financial behaviour at an early age. However, it also shows stated that a considerable chunk of millennials (around 30%) set aside less than 10% of their annual income as savings.
The report highlighted that millennials are rapidly evolving as ‘forward thinkers’. While boomers are either into retirement or nearing it, millennials have plenty of time to plan and save. There is a growing consciousness among millennials to start saving early for their post-retirement life.
Retirement planning on agenda
Over 34% of the respondents stated that they were highly conscious of the matter and have started saving already whereas close to 48% of the respondents said they have not yet factored in retirement planning but a considerable chunk (23%) aim to kick-start retirement planning soon.
According to the survey, more than 56% invested in tax saving plans, while the rest were found supposedly unaware.
The report also highlighted that banks continue to lead the stride as the most preferred go-to lending avenue for millennials. The survey highlighted that 41% of millennials secured loans from a bank whereas 35% of the borrowers opted for a digital lending platform.
The pan-India survey was conducted among more than 20,000 customers on the CASHe platform as well as on its newly acquired wealth management platform, Sqrrl. It witnessed the participation of millennials from more than 80 cities.