40% consumers likely to invest in equities, mutual funds in 2022: Survey

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Indian households are likely to turn away from big purchases, such as 4-wheelers, and focus on saving money in 2022 as the severity of COVID-19 leads consumers towards becoming more judicious about their finances this year, showed findings from a survey conducted by community platform LocalCircles.

Findings show that only 40 per cent of those surveyed are likely to invest in equities and mutual funds; while just 15 per cent of families are likely to spend on major items like property, cars and jewellery in 2022.

LocalCircles had conducted a national study “India Consumer Spending Outlook – 2022” to understand consumer sentiment for the year 2022. The study attempted to understand consumers’ plan to purchase residential property, 4-wheeler, health insurance, jewellery, and equities or mutual funds in the year 2022.

The survey results show that 1 in 7 families are willing to spend money on residential property in 2022. 83 per cent of those surveyed said do not plan to purchase any residential property. This question in the survey had received 9,834 responses.

While 82 per cent of those surveyed said that they did not want to purchase any car in 2022. On an aggregate basis,1 in 6 families is likely to spend on a 4-wheeler vehicle in 2022. This question in the survey received 9,928 responses.

Only 1 in 7 families are likely to spend on gold, diamond, silver or multiple types of jewellery in 2022. 78 per cent said that they do not plan on buying any jewellery in 2022.

1 in 5 families are likely to prefer investments in equities or mutual funds in 2022, as per the survey findings. 10 per cent said that equities are their preferred investment option in 2022, 31 per cent said mutual funds, 4 per cent said gold and 22 per cent said bank fixed deposits.

LocalCircles also asked consumers about their plan to purchase new or increase health insurance coverage in 2022. In response, the majority of 67 per cent of citizens said they “will keep the current health insurance coverage as is”; 15 per cent said they “will increase the health insurance coverage amount”; and 18 per cent said they “do not have health insurance coverage and don’t plan to purchase it either”. On an aggregate basis, 1 in 6 families are likely to increase their health insurance coverage in 2022.

The study had received more than 47,000 responses from households residing in 391 districts of India. 63 per cent of the respondents were men while 37 per cent were women. 47 per cent respondents were from tier 1/metro locations, 33 per cent from tier 2 locations and 20 per cent respondents were from tier 3, 4 and rural locations.

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