The 12-15-20 investment formula can make you a millionaire!
What is the 12-15-20 formula of investment? How does the 12-15-20 formula work? Which investment will give strong returns? How much of your income must you save?
Increased financial literacy in India, combined with the pandemic, has resulted in a dramatic increase in the investor community, particularly among the younger generation. Further, innovative wealth management strategies enabled by new digital technology have created new opportunities for financial organisations. Now, wealth management firms can offer their entire portfolio of services online. While the elder generation prefers more traditional methods of communication such as personal connection and mail, millennials prefer to communicate with their service providers via apps and other online platforms.
Nearly 76% of respondents are first-time investors, and 69% have been investing for less than a year, said a survey done by Groww, India’s premier investing platform. The survey was done to know Indian investors’ top financial investments ahead of the festive season.
The survey questioned investors aged 18 and over to ascertain whether the festive season affects their investment decisions. The survey discusses several investment channels and reasons that could help further unlock the market’s potential.
Key findings
-Only 5.7% of investors have been in the market for more than five years. Gen Z (18-24 years) and Gen Y (25-30 years) account for most first-time investors, accounting for 39% and 34%, respectively. Overall, among investors, stocks and mutual funds top the charts, at 87% and 58%, respectively.
-The primary motivations of investment will be long-term wealth creation and general savings, reveals the survey. Additionally, the survey reveals that retirement planning is a top investment priority for individuals aged 40 years and older.
-On the other hand, tax savings have little impact on investment decisions, with only 3% of investors exploring tax-saving asset class possibilities this holiday season.
– Over 80% of respondents stated that the festive season would not affect their investment plans, while 30% of respondents aged 18-30 years want to invest more than usual, demonstrating positive views toward investing over the festive season.
– 35% of investors aged 31-40 years and 34% of investors aged 25-30 years intend to invest less than usual. This is partly because 45% of respondents intend to make minor purchases (shopping), 19% intend to renovate their homes, and 18% intend to make larger purchases such as a car, electronics, or other significant expenditures.