Mutual funds have outpaced fixed deposits for the second consecutive year, favored by 54% of investors, according to a Bankbazaar survey of 1675 respondents in India. Despite being a non-investment avenue, savings bank accounts remain the top choice for 77% of participants. The study, focusing on working professionals aged 22 to 45, reveals shifting preferences among men and women, with 50% of women opting for mutual funds, down from 56% in 2022. Geopolitical tensions and high inflation have impacted savings, with emergencies, children, and lifestyle upgrades driving saving motives. Retirement planning has suffered, particularly for women, dropping from 48.45% to 34.3%. The data also highlights low insurance penetration, with 6% lacking coverage.
Mutual Funds Trump Fixed Deposits Again in 2023, Savings Prioritized Amidst Economic Challenges
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