HDFC Life, in association with ValueNotes has reveal scorecard assessing current state of financial freedom of Indian Urban consumers, their awareness about available financial products, and literacy towards financial planning.
Survey shows that Indian consumers’ sense of financial freedom is low and is yet to reach a state of financial nirvana. We are herewith quick summery of report.
Source of advice for financial decision making :-
Study reveal 35% people in India rely on social network of friends and relatives for financial planning advice, only 27% seek professional help (Financial Planner/ Advisor). 32% people handle financial matters on their own.
Comprehensiveness of financial plans:-
If you look at results only 16% of young India in urban area has comprehensive financial plan.34% of young people has only basic plan whereas 13% are yet making financial plan. Only few Indians are sure about comprehensiveness of their financial plan. Many of them are having only Basic plan covering few short and long term goals.
Comprehensive plan: Covers all short and long term goals
Somewhat comprehensive plan: Covers most of the short and long term goals
Basic plan: Covers a few short and long term goals
Plan in progress: Identified short and long term goals, but no plan in place
No financial goals: No short and long term goals
Financial Plan review Frequency:-
Very few Indian are disciplined in reviewing their financial plan. Study shows that 20% Young people do not worried about future as they don’t have any financial plan. Only 13% of young people review financial plan regularly.
Indians are concern about:-
Majority of Indian are concern about inflation & government regulation.Some of them are bothered about interest rate & economic down swing. People are least bothered about volatility of stock market.
Level of Awareness about financial products:-
Study reveal Indian Urban consumers are most knowledgeable about insurance products, apart from that they have average awareness in market linked & fix income instruments. The figures below show the overall financial awareness of the four consumer segments and the level of knowledge about the different financial instruments.
Priorities of Indians:-
Education of child is top most priority for every one including young India, followed by health expense and retirement.
Life Freedom Index:-
The life freedom index assesses the current state of financial freedom of Indian urban consumers, their awareness about available products, sufficiency and adequacy of financial planning, and above all their current state of financial freedom.
Survey report showing methodology, participant count and location details are given herewith for your reference.
The survey clearly reveals that Indian Urban consumers’ sense of financial freedom is low. They are making financial choices on unstable foundation. Consumers are chalking out financial plans, despite limited knowledge about financial goals and various investment options available.
On a positive side, Indian Urban consumers have realized the necessity of financial planning and are already chalking out financial plans either by own or by help of financial planners.
Do share your comments/views on this survey.