Gold emerges as a popular choice of investment for Indians, with 53% preferring gold as an investment tool, 35% of population showed awareness towards digital gold and 10% of people said that they had already invested into Digital Gold, as per Axis My India.
Axis My India, the consumer data intelligence company, released its India Investment Behaviour Study on Thursday.
Highlighting consumer behaviour around different forms of investments, the survey focuses on Digital Gold as an investment instrument and delves into the investment patterns, financial awareness, key barriers and drivers for investments in Indian metro and non-metro cities.
When the abovementioned factors were surveyed in the population of metro cities, a key revelation was the high inclination of Indians towards investment and a fair-share of awareness.
· A total of 65% of Indians invest a part of their income in one form or the other and Gold emerged to be a popular choice of investment. With 53% preferring gold as an investment tool, 35% of population showed awareness towards digital gold and 10% of people said that they had already invested into Digital Gold.
This method of investment showed an increasing popularity with the young population as 15% of them in the age group of 18-24 years, showed a strong intent to invest into Digital Gold.
· Of those who invest in digital gold – 55% are males and 45% are females, 48% belong to 25-34 years, and 56% are married with kids. Pop Strata wise 11% in Metros, 11% in Tier-I and 8% in Tier-II have already done digital gold investment which shows its increasing reach across pop strata.
The trust factor was prominent while looking for investment into gold as a 76% population purchased Gold from a trusted brand only and 54% population said that if there is a Indian government backed company which makes investing easier in Digital Gold, they will try investing in Digital Gold.
An interesting observation was the increasing influence of digital modes of investment as 24% of people were found to have tried some form of digital investment. An increase in investment was observed with age as the investment pattern depicted an incline with age 67% of 25-34 invest as compared to 76% in the age group of 35-44 years.
· Of the 24% population that invests through digital modes, 28% of the population was male and 19% female. Safety and security are the major motivators behind people investing followed by saving tax, and profits.
Specifically, in metros cities Gold (65%) is the highest investment option, followed by FDs (44%), and Mutual Funds (37%), and followed by others. Gold as an investment instrument is higher among females (65%) than males (41%) reiterating the traditional sentiment of trust placed upon the yellow metal. The survey also showcases a future intention to invest in Gold as (58%) population in Metros showed interest in Gold investment, followed by Mutual funds (35 %) and stocks (23%).
Key-takeaways from the study are:
1 36% people think that Gold is also a form investment, which can be used in emergencies too (30%). This factor of using Gold for emergency use is higher in females (35%) compared to males (24%).
2 In metros Gold (65%) is the highest investment option, followed by FDs (44%), and Mutual Funds (37%), and followed by others.
3 The survey also showcases a future intention to invest in Gold as 58% population in Metros showed interest in Gold investment, followed by Mutual funds (35%) and stocks (23%).
4 Investing in Digital gold is 13% in metro cities in India. Of which 59% of females from the age group of 25-54 plan to invest in Gold and 12% of females plan to invest in digital gold, whereas the digital gold investment option for males is higher at 14%. Male (40%) will prefer to invest through MF, stocks and so on.
5 A significant 76% mentioned that they buy Gold only from trusted brands, which signifies the importance of Trust when it comes to Gold purchase
6 54% population said that if there is a Govt. of India backed company which makes investing easier in Digital Gold, they will try investing in Digital Gold.
7 85% of population was aware that Digital gold is a new age investment instrument that allows you to invest in 24 Karat Gold, 73% knew that it could be redeemed for physical gold and 64% was aware that it can be purchased at Re 1/- through their phones.
8 57% buy Gold during festive season or marriage and 46% have inherited some form of Gold from their parents or family.
9 The survey also indicates that women purchase gold in form of jewellery (57%), followed by marriage (45%) form of investment and emergency comes third and fourth at 36% and 355 respectively.
10 In metros, 56% buy gold in form of jewellery, 45% for marriage, 36% and 34% for investment and emergency purposes.
11 The current source of awareness for digital gold is coming from social media (53%), followed by Mass Media like TV/Print/Outdoor (42%), Families & Friends (38% Awareness on digital gold is more in higher income groups and metro and tier 1 cities).
Pradeep Gupta, Chairman and Managing Director, Axis My India, said, “India's big cities have seen rapid digitalisation, and this has had an impact on peoples' investment behaviours. Gen Z and Millennials are growing more fond of investing in digital gold as a result of social media's increased awareness-anchoring power. Marketers must take advantage of these opportunities while recognising how investments are changing in tandem with changing demographics and times.”