Coimbatore : Leading consumer data Intelligence company, Axis My India, launched India’s Investment Behaviour Report – a comprehensive study to understand Indian consumers’ approach towards different forms of investment, key barriers and drivers for making investment decisions. Focusing on varied investment instrument, the report unveils consumer opinion towards Gold investment and the rising trend of new age instruments like ‘digital gold’.

Gold emerged as the most preferred form of investment for people in Tier-II cities with 43% of respondents investing in gold due to an existing cultural affinity.

Commenting on the survey, Pradeep Gupta, Chairman and Managing Director of Axis My India said, “According to the observed trend, tier 2 cities have enormous potential for digital investment. Many young investors from tier II are increasingly choosing to invest in digital assets as a result of the rapid digitization, which has spread internet literacy outside of metro areas. Even though gold is the most popular and traditional investment option throughout cities, tier II cities place a high value on trust when purchasing gold.”

Investment Behavioural Truths

65% of India investments in some form. 51% invest from Tier-II towns, 66% invest from Tier-I towns while 74% invest from metros invest

Safety and security is the main motto to invest followed by profits, view of 50%, (View of 58% Metro dwellers, and 40% each Tier I & II cities)

Male (43%) and youth (44%) are more focussed on profit while female (57%) and higher age groups between 45yrs-54yrs (57%) are more focussed on security.

36% people across the country ‘think’ that Gold is also a form ‘investment’ apart from being a ‘jewellery’ of which lowest are from Tier II cities (view of 30%)

Gold is the most ‘preferred’ form of investment for 53% across metros, Tier I and Tier II, followed by Mutual Fund (41%). Among Tier II 43% is investing in gold

Gold as an investment instrument is higher among females (65%) with male at (41%). Tier II majorly invest in gold (43%), followed by Mutual funds (32%) and fixed deposits (31%)

Tier II cities reflect a higher investment propensity in Gold (36%) as compared to metros and Tier I cities. Tier II cities however reflect same investment aspirations in terms of Digital gold as that of metros at 13%

Investment Pattern across the country is concentrated towards Gold (48%), Mutual Funds (37%) and FD (29%) in future. Increase in Digital Gold investment pattern highlighting potential of 3% increase.

Scope of Digital Investment in India

India is increasingly becoming digitized with 24% of people across the country having tried some form of digital investment. In this regards Tier II cities reflect a close second to metros at 20%

Of those who do digital investment – 50% have invested in MF, 40% in shares and a significant 35% in Gold (both digital gold and gold bought from e-commerce). Only 10% invest in cryptocurrency.

The trend of the country resonates with the Tier II cities where 47% prefer to invest in Mutual funds, 37% in shares/stocks and 32% in gold. Interestingly amongst the three geographical considerations, Tier II cities have had the highest share of people investing in cryptocurrencies (16% have invested).

Digital investment penetration is higher in Males (28%) compared to Females (19%). Population strata wise digital investment penetration is more or less similar which shows the increasing use of digital even in smaller towns.

Amongst varied instruments of digital investment, Gold (both digital gold and gold bought from e-commerce) is majorly bought(46%) by 35-44 yrs. old, Shares/Stocks (58%) and MF (56%) are majorly bought by 55-60 yrs. old
Fixed Deposit/Recurring Deposit are majorly bought (31%) by 45-54 yrs old and Cryptocurrencies are majorly bought (21%) by 18-24 yrs. old

Fixed Deposit/Recurring Deposit are majorly bought (31%) by 45-54 yrs old and Cryptocurrencies are majorly bought (21%) by 18-24 yrs. old

Gold as a preferred investment

The first thing which comes to mind while thinking of gold is a form of jewellery (54%) and marriage (37%). Gold is also thought as a form investment for emergencies (30%)
This factor of using Gold for emergency use is higher in females (35%) compared to males (24%)

This factor of using Gold for emergency use is higher in females (35%) compared to males (24%)

57% buy Gold during festive season or marriage of which 56% are from Tier II & 46% have inherited some form of Gold from their parents or family of which 46% are from Tier II cities.

A significant 76% across the country mentioned that they buy Gold only from trusted brands, which signifies the importance of Trust when it comes to Gold purchase.

22% from Tier II cities said they will only buy gold from trusted brands

Digital Gold- An attractive form of investment opportunity

35% people are aware of Digital Gold as an instrument of investment of which the lowest share of 24% are from Tier II cities

Of those who invest 55% are Males & 45% Females. Awareness is furthermore in higher income groups and metro and tier 1 cities

Pop Strata wise 11% in Metros, 11% in Tier-I & 8% in Tier-II have already invested in digital gold which shows its increasing reach across pop-strata

Digital Gold is increasingly an attractive form of investment with 10% of people having already tried it who invests in general and 7% at an overall level with a higher skew in the 25-44 age group

From an intent perspective out of all who invest, 13% plan to invest in Digital Gold in the future, and this no. is the same across pop strata.

Awareness on Digital Gold

Awareness on Digital Gold at an overall level is mainly because of social media (53%) which shows the power of Word of Mouth, followed by Mass Media like TV/Print/Outdoor (42%), Families & Friends (38%)

85% aware that digital gold is a new age investment instrument that allows you to invest in 24 Karat (85%). This awareness is lowest amongst Tier II at 15%

73% aware that one can redeem digital gold for 24 Karat purest gold coins and gold bars / if required. This awareness is lowest amongst Tier II at 15%

64% aware that they can invest in digital gold for Rs. 1 through their phone. This awareness is lowest amongst Tier II at 15%

Future potential of Digital Gold Investment

Male Potential to invest in digital gold is 54% while that of female is 50%

Youth’s potential to invest in digital gold is 63% which decreases towards higher age groups

Across all cities there is potential of about 60% investment in Digital Gold

In spite of low awareness on Digital Gold, having Govt. of India backed company makes it easier for people to invest in Digital Gold

Around 50% of all income groups believe that having Govt. of India backed company will make it easier for them to invest in Digital Gold
Metro cities prefers having Govt. of India backed company for digital gold investment more than tier 1 & 2 cities

21% from Tier II said they will invest in digital gold If there is a Govt. of India backed company which makes investing easier

This survey was conducted among 5000 respondents using a stratified random sampling approach and the questionnaire was administered through a combination of CAPI, CATI & CAWI. In terms of geographic segmentation, the survey included 36% Metros (Mumbai, Delhi, Chennai, Kolkata); 39% Tier –I towns (Bangalore, Hyderabad, Pune, Ahmedabad, Noida, Jaipur), and 25% Tier-II towns (Chandigarh, Vizag, Coimbatore, Gurgaon, Ludhiana). Ensuring a close to equal representation it had 52% male and 48% female participants. The age group of the sample include 47% of 25-34 years –, 22% of 35-44 years -, 18% of 18-24 years and 13% of 45 years and above.