Saving and Investment Pattern of Youth in Mumbai

Sidhant Lodaya; Udayveer Singh Sekhon; Soham Kapadia; Sukanya Narayan; Toshan Gugnani; Trisha Sinha

Volume : X, Issue : VIII, August - 2020

Saving and Investment Pattern of Youth in Mumbai

Sidhant Lodaya, Udayveer Singh Sekhon, Soham Kapadia, Sukanya Narayan, Toshan Gugnani, Trisha Sinha

Abstract :

Channelizing one’s savings into investments is important for the growth of a developing economy. Value of a rupee tomorrow is less than the value of a rupee today. Investments are a great opportunity for people to get returns and earn more. Without investments, cash flows in the economy are less and lead to a stagnant economy. Large volumes of investments lead to economic stability, improved capital flows and most importantly leads to development and opportunities to increase one’s income. The research project studies the savings and investment pattern among youth aged between 15– 30 years in Mumbai. The research also includes the preference of investment channels, parameters considered before investing, initiatives undertaken by the government and the financial literacy levels amount the youth in Mumbai. Primary data was gathered by survey method with quantitative data being collected. The objectives of the research were (1) To the study the pattern of saving and investments among the youth in Mumbai. (2) To find out the factors that affect the investment among the youth in Mumbai. (3) To analyze the problems faced by the youth in investing. (4) To know the financial literacy rate among the youth in Mumbai. (5) To know about the initiatives taken by the government in order to boost investments and saving. The study found that the youth are not being able to save every month. Only around 23% of our sample size were able to save every month. Majority of the people only save up to ₹5000 a month as their income levels are low and the youth likes to spend in the moment. Out of those who were able to save almost half the people never invest the main reason being lack of knowledge about the financial market and others preferring cash in hand. The most popular channel of investments was mutual funds followed by equity shares and savings accounts. The most important factor the people considered before investing was the rate of return and the major problems faced were the fear of incurring losses. Financial literacy levels were found to be low which seems to be a matter of concern as Mumbai is the financial capital of the nation. Wrong guidance by others while investing was also a problem faced by some of the youths. Awareness programs should be promoted regarding investments and the benefits and risks involved and all the avenues available. Increase in awareness and financial literacy would lead to an increase in volumes of investments which would complement growth of the economy.