India is one of the most investment savvy among the emerging countries. The emerging affluent individuals use investment products to increase their wealth, find a study

In India 68 per cent of the emerging affluent are using investment products to achieve their financial goals—it is the highest number in the study by Standard Chartered that examines 11 markets across Asia, Africa and the Middle East.

The study also reveals that more than three-quarters (79 per cent) of the emerging affluent in India believe effective wealth management holds the key to greater social mobility. This investment-savvy approach is working as India is the most socially mobile market in the study, along with China, with 67 per cent of its emerging affluent experiencing upward social mobility. In India, 80 per cent of the emerging affluent feel better off than their parents.

The emerging affluents in India are using a range of investment products to meet their financial goals. 31 per cent of them selecting mutual funds, 25 per cent choosing fixed income investments and 22 per cent equity investments.

“It’s exciting to see that social mobility is booming among the emerging affluent, and that they are outstripping their parents’ success in education, careers and home ownership. These aspiring consumers are determined to continue moving upwards, and know that investing can help them reach their financial goals,’ Shyamal Saxena, head – retail banking, India, Standard Chartered Bank said.

Despite using investment products, 56 per cent of India’s emerging affluent feel far away from achieving their top financial goals. This could be down to them using investment products, but not as part of a broader investment strategy as only 55 per cent say they have an investment target and a strategy to achieve it.

India’s emerging affluent recognise that a lack of financial understanding may be stopping them from meeting their financial goals, and that financial education could make all the difference. More than half of them say they feel held back in their aspirations by their lack of financial knowledge and 62 per cent believe financial education would help them reach their financial goals faster.

However, more than three-quarters (78 per cent) of India’s emerging affluent say their familiarity with digital tools has been vital to their personal success. Eighty per cent say online banking makes them feel that they have more control over their money and investments and 76 per cent say digital money management has helped them get closer to achieving their financial goals.

The number one financial goal for India’s emerging affluent is saving towards their children’s education. Increasing personal wealth over time, owning a house, rapid career progression such as promotions and salary increases, starting a successful business, owning a nice car, spending more money on your passions / leisure are some of the financial goals. Putting your children through university, leaving a legacy to your children and being able to afford personal luxuries like designer goods, expensive jewellery, etc and earning more than your parents too are part of the goal list.