60% of Indian Investors Stress Over Future Uncertainty

Aspero's Wealth & Well-Being Report Reveals Diversification Emerges as the Key Stress Management Strategy

Chief Operating Officer of Aspero, Vibhor Mittal

FinTech BizNews Service   

Mumbai, December 15, 2023: Aspero, India’s premier fixed income investment company (SEBI-registered OBPP), today launched the first-of-its-kind ‘Wealth & Well-Being: Unravelling the psychological impact of pursuit of wealth’ report in partnership with Amaha, a leading mental health organization. This partnership seeks to address the convergence of financial and mental health, acknowledging the influence of stressors related to wealth creation on individuals. The jointly crafted report focuses on generational differences, financial objectives, risk tolerance, and adaptive strategies, revealing the psychological aspects of wealth accumulation.

The report highlights how digital platforms significantly shape today's investor decisions and reveals how individuals manage stress through their investment choices. Targeting a diverse group of salaried professionals, the survey delves into risk appetite, investment preferences, and external influences. By combining quantitative data, age-based risk analysis, and qualitative insights, the report provides a comprehensive view of participants' financial behaviors.

Commenting on the launch of the report, Chief Operating Officer of Aspero, Vibhor Mittal said, “Understanding the intricate relationship between wealth creation and well-being of an individual is significant in financial planning. Our collaboration with Amaha for the report delves into the psychological aspects of wealth accumulation, emphasizing the importance of a balanced and informed approach to investment. By unraveling these insights, we at Aspero aim to guide investors towards strategies that not only enhance wealth but also contribute to their overall welfare.”

Key Findings: Unraveling the Wealth-Mind Nexus

  • Diverse Risk Profiles Across Age Groups:
    • 36% of respondents aged 46-60 identify as aggressive investors, while 32% adopt a conservative stance. The 26-45 age group consistently demonstrates a moderate risk appetite shaped by market volatility, financial knowledge, and fear of losses.
  • Investment Preferences and Early Onset:
    • Over 60% of surveyed participants aged 21-25 prefer Fixed Deposits and the stock market, while 82.85% of the 26-35 age group leans towards mutual funds. Impressively, 51% commenced their investment journey within the first two years of their professional life, indicating proactive financial planning.
  • Systematic Investment Plans (SIPs) Dominance:
    • Users display a strong inclination towards SIPs, with over 70% choosing this investment strategy across varied asset classes.
  • Balanced Investment Priorities for the 36-45 Age Group:
    • This age group allocates investments equally to emergencies and their children's future expenses, showcasing a dual commitment to safeguarding against unforeseen circumstances and preparing for the next generation's financial needs.
  • Retirement Corpus Preferences:
    • Aggressive investors aim for a retirement corpus of Rs.10-20 Cr, while conservative investors lean towards Rs.20-50 Cr. Notably, 32% of men are comfortable with a 10-20 Cr corpus, while women prefer 5-10 Cr.
  • Decision-Making Dynamics and Emotional Responses:
    • Aggressive investors rely on personal research, while conservative investors turn to parents for guidance. Aggressive investors are twice as likely to feel excited and express a preference for a retirement corpus between Rs.10-20 Cr.
  • Stress Management Strategies:
    • Diversification is a primary stress management strategy, with a significant percentage opting for a balanced portfolio. Aggressive investors are less stressed about perceived risk, while conservative investors worry about a lack of knowledge.
  • Fixed Income Instruments Allocation:
    • 36% allocate 6-20% of their portfolio to fixed income instruments. FDs remain popular, but there's a need for greater investor education on alternative instruments.
  • Perception of Fixed Income Instruments:
    • Most respondents view fixed income instruments neutrally or as stress relievers. Ambitious investors perceive these instruments as incongruent with their goals, favoring riskier assets for quicker returns.
  • Interpretation of Financial Freedom:
    • Respondents associate financial freedom with agency over time, independent decision-making without monetary concerns, and achieving a debt-free status.

The report's insights carry vital implications for India's retail investors, emphasizing the need for tailored financial education. Evolving investment preferences indicate a maturing investor community, offering an opportunity for institutions to guide investors in navigating novel assets. Psychological aspects, like excitement and stress management through diversification, stress the role of emotional intelligence in financial education. Resources should not just provide information but also address emotional challenges, advocating a holistic approach. The strong reliance on fixed income, particularly Fixed Deposits, suggests an enduring preference for perceived safety. In essence, these trends depict the evolving nature of retail investing in India, emphasizing the need to adapt financial education for a resilient and well-informed financial community.

Download the full report from here.

About Aspero:

Aspero, India’s premier fixed income investment platform, is a SEBI-registered Online Bond Platform Provider (OBPP) that offers an easy-to-use, fast, and secure interface for retail investors and wealth partners. It allows users to discover and trade in multiple listed bonds across various rating categories. Through deep integration with exchange platforms for settlement and rich insights on issuers across sectors, the platform offers a thoroughly vetted selection of bonds and caters to all investor requirements throughout the investment lifecycle (from the stage of evaluation to transaction maturity). The company has traded over Rs.25,000 crore worth of bonds since 2021. 

About Amaha:

Amaha is a leading mental health organisation in India dedicated to transforming workplace culture into one that supports the mental health of its employees. With an in-house expert team of 140+ psychiatrists and psychologists, they provide personalised treatment and care plans for a range of mental health conditions both online through its digital platform and in-person support through their centres in Delhi, Mumbai and Bangalore. Their acclaimed mobile app, awarded "Best App for Good" by Google Play has touched 5 Million lives globally. Their Employee Well-Being program has impacted more than 700K+ lives across 400+ cities in India with over 120+ corporate partners.

To know more, visit www.amahahealth.com

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