Invest India Savings & Income Survey
Age group: 18 - 59 years
IIMS Dataworks
June 2007
· People in rural India prefer going to the more traditional and rural sources for obtaining funds. Out of the 71-million individuals, across urban and rural India, who took a loan in the last two years (including one for buying a house), 1 in 3 tapped their friends and relatives while another third opted for moneylenders. Banks were next with just 19% followed by self-help groups (9%) and co-operatives societies (6%).
· Education seems to have made a difference where insurance was concerned. 30% of people without any formal education remain unaware of life insurance but only 7% of graduates were unaware of life insurance.
· Bank accounts and deposits seemed popular across people of varying educational backgrounds.
· Over 1.76 million Indians in the paid workforce will make fresh investments in mutual funds within the next year, 1 million of whom would be new mutual fund investors.
· Only 105-million odd individual earners in the country ( 32.8% of the total paid workforce) own at least one life insurance policy.
· 20.56 million people who intend to go in for their first or additional life policy in a year. An additional 40 million are undecided on an extra/first life insurance policy.
· The country's over 321 million workers in the 18-59 year age group will go in for 11 million new houses in two years.
· A large part of retail finance growth which includes mutual funds, stocks, insurance and housing, will be driven by the country's 403-odd class-I towns with a population of over a lakh (excluding top 8 metros), 10 cities with over a million population, and Baroda and Surat.
· Among high income individuals (annual income over Rs 5-lakh), over three-fourths ( 77.4 %) of all investible surplus goes into bank and post office deposits. For middle and lower income groups, this figure goes a high as 87% with just 1-2% for mutual funds and stocks.
· Risk perception on equities varies from 56% - for high-income earners, above Rs 5 lakh - to over 65% - for those earning Rs 90,000-2,00,000 per year.
· Tangible, value-impacting factors such as location (23%), legal clearance (15%) and construction quality (13%) remain the deciding factor in property purchases, and not intangibles such as the reputation of the builder/contractor (1%).
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