Analysis of India's Investment Practices in 2020: Examining India's Investment Trends
In the dynamic world of digital investment, ETMONEY has emerged as a popular platform attracting a diverse range of investors, with a significant proportion of younger investors in their 20s and 30s. Over the past four years, ETMONEY has seen 65 to 70% of its investors fall within this age group, according to common knowledge and available data.
One of the key findings from ETMONEY's investment statistics is that over 75% of investors made positive returns in years other than 2019. This trend suggests the importance of long-term investment strategies, as investors who held their investments for a longer period of time earned more returns than those who were fickle with their investments.
Interestingly, the investors who were in the top 25% in terms of returns earned had the majority of their investments in ELSS funds, which have a lock-in period of three years. This underscores the significance of well-planned, long-term investment strategies.
In terms of geographical distribution, Bihar and Jammu & Kashmir have the highest equity allocation among states, while Maharashtra and Gujarat are not among the top states with the highest equity allocation. On ETMONEY's platform, the contribution of T30 locations (top 30 cities) was 45%, while the contribution of B30 locations (cities ranked 31st and above) was 55%.
Investment decisions based solely on historical performance have not always yielded positive results. For instance, in 2019, 70% of investors went into negative territory in terms of returns, with a significant chunk of these investors having held onto small-cap funds, which was the biggest reason for negative returns.
However, if these investors had followed the time-tested investing principles of asset allocation and rebalancing, each of them would have made handsome positive returns. It is crucial to remember that investing wisely involves more than just relying on historical performance data.
Furthermore, it is important to note that high-income bracket investors have the least allocation of their income towards investments. As income increases, a larger part of the increased income is going towards discretionary expenses. This highlights the importance of prioritising investment over discretionary spending for long-term financial security.
In ETMONEY's first year of operation, 58% of investor monies were allocated to equities, which increased to 73% in the second year. In 2020, most investors on ETMONEY are in the green with 76% of investors showing positive gains.
Lastly, the gender diversity in investment is on the rise. In ETMONEY's first year of operation, only 9% of investors were females, but by the fourth year, the female investor count had more than doubled to 19%.
While this article provides an overview of the trends and statistics on ETMONEY, for precise demographic statistics for ETMONEY investors by age over time, it is recommended to consult ETMONEY’s official reports, investor presentations, or reach out to their customer support for the latest analytics.
- For long-term financial security, prioritizing investment over discretionary spending becomes increasingly important as income increases, as high-income bracket investors have the least allocation of their income towards investments.
- In ETMONEY's investment landscape, equity funds, such as ELSS funds, have shown significant returns for those who adopt well-planned, long-term investment strategies.
- It is essential to remember that investing wisely involves more than just relying on historical performance data; implementing time-tested principles like asset allocation and rebalancing can lead to higher positive returns.
- Diversifying investment portfolios with mutual funds, including equity funds, liquid funds, debt funds, and hybrid funds, is key to navigating the dynamic world of digital investment for personal-finance growth, as demonstrated by ETMONEY's various investor statistics.
