The
Way2News Survey, with ~65,000 respondents across five states, reveals a
significant increase in stock market investments; Karnataka leads the way with
a remarkable 16% increase
Hyderabad, India, 1st August 2024 : Way2News,
a leading hyperlocal news platform, has released the findings of its recent
survey titled "How South India
Invests". The survey, which gathered data from over 65,000 respondents across 5 states—Andhra Pradesh, Telangana,
Tamil Nadu, Karnataka, and Kerala—provides crucial insights into the region's
investment habits.
The
survey indicates that gold remains the
top investment choice, particularly in Tamil Nadu, where 34% of respondents
prefer it over other investment tools. However, there is a notable rise in stock market investments, especially in Karnataka, where 16% of respondents are actively
investing in stocks. This highlights a growing trend among South Indian investors
who are beginning to see the stock market as a viable and lucrative investment
avenue. This shift can be attributed to several factors, including increased
financial literacy, the accessibility of online trading platforms, a growing
awareness of potential returns, and higher disposable incomes, particularly in
southern states where the average per capita income is 5.5 times the national
average.
Recently,
the Governor of the Reserve Bank of India
also highlighted that Indian households are increasingly favouring capital
markets over traditional banks for their savings. This observation aligns with
the findings of Way2News' survey, which illustrates this rising trend in South
India. There has been a significant surge in Demat accounts, with the number
reaching 15 crore within a decade, as reported by Motilal Oswal, compared to just 2 crore accounts in 2015 (NSDL). With 3.1 million new accounts being opened
monthly, this growth underscores the shift in investment preferences in India
towards more dynamic financial instruments such as stocks and mutual funds.
Although bank deposits still constitute a significant portion of household
financial assets, their share is declining.
Key
Takeaways from the survey:
●
While gold remains a popular investment
choice, especially in Tamil Nadu where 34% of respondents prefer it, there is a
growing interest in stock market investments across South India. Karnataka
leads with 16% of respondents investing in the stock market, followed by Andhra
Pradesh & Telangana (14.47%), Kerala (14%), and Tamil Nadu (12%),
reflecting a growing recognition of stocks as a wealth creation tool
●
There is a noticeable decline in traditional
fixed deposits, recurring investments, and insurance across states, indicating
a shift towards investment options with potentially higher returns. In Andhra
Pradesh & Telangana, fixed deposits and recurring investments are at
12.67%, while insurance preferences stand at 8.95%. Kerala shows similar trends
with fixed deposits and recurring investments at 14%, and insurance at 7%.
Tamil Nadu reports fixed deposits and recurring investments at 13%, and
insurance at 7%. Karnataka, with fixed deposits and recurring investments at
10%, and insurance at 9%
●
Investment preferences in real estate vary
significantly by state, reflecting regional differences - Andhra Pradesh & Telangana (17.04%),
Karnataka (14%), Tamil Nadu (12%), and Kerala (8%)
●
Mutual funds are favoured highest in Kerala (17%),
Karnataka (13%), Andhra Pradesh & Telangana (9.41%), and Tamil Nadu (7%)
●
Bonds remain a niche investment option with
lower interest levels across all states due to fixed returns
●
Provident funds (PF) and pension schemes are
attracting growing interest, particularly in Kerala (11%), highlighting a focus
on long-term financial planning and security.
“We are witnessing a clear shift towards
diversification and dynamic investment strategies among South Indians. This
trend reflects growing financial literacy and a desire for higher returns,”
said Raju Vanapala, Founder and CEO of
Way2News.
The findings of the Way2News survey underscore
a pivotal transformation in the investment landscape of South India. While gold
continues to be valued for its cultural significance, the increasing interest
in stock market investments and other dynamic financial instruments highlights
a maturing investor base. South Indians are not only preserving their wealth
through traditional means but are also actively seeking growth opportunities,
signalling a robust and forward-thinking investment culture.
About
Way2News
Way2News is a leading hyperlocal news platform
in India that provides relevant and reliable news coverage extending beyond
districts to mandals and villages. The platform aims to inform and empower
every Indian with the latest news in real-time, using artificial intelligence
to personalize content based on language and preference. By promoting citizen
journalism, Way2News aims to foster a more diverse and democratic media
landscape by allowing citizens to share news stories from their local area. It
combines the power of both human intelligence and artificial intelligence to
provide the most relevant news to its users. The app has more than 50 million
downloads and close to 13 million monthly visitors. The platform delivers
real-time news in eight local languages, including Hindi, Telugu, Tamil,
Kannada, Malayalam, Marathi, Bengali, and Gujarati, using advanced technology.
Media
Contacts:
Muskaan Bhatia | muskaan@themavericksinidia.com | +91 9871920749
Sanya Prasad |sanya.p@themavericksindia.com | +91 9810694356