This was the finding of an AC Nielsen-ORG Marg survey, conducted in association with Tata AIG Life.
No, the latest stock market crash has nothing to do with investors' aversion to dabble in equities, as the survey was conducted in April when the stock market was actually hitting new peaks every day.
The survey focused on financial and retirement plans of 300 people across Mumbai, Delhi and Bangalore from the socio-economic class A and B1 in the 30-38 age group.
It covered middle-level and senior executives with educational qualification of graduation and above, and businessmen with junior college background.
The second most preferred investment option was bank deposits (39 per cent), followed by NSC/ NSS/ PPF (22 per cent). A mere 11 per cent invested in mutual funds, 10 per cent in equities, 9 per cent in pension plans, 4 per cent in company deposits, bonds, UTI, chit funds and 1 per cent in debentures.
Mumbaites seem to have bigger appetite for risk compared with people in Delhi and Bangalore. A higher percentage of respondents - 19 per cent of Mumbaikars - preferred to invest in shares compared with 3 per cent in Delhi and 9 per cent in Bangalore.
Overall, in Mumbai, investments in shares and bank deposits were found to be significantly higher than that in the other two cities. In Bangalore, investments in NSC/ NSS/ PPF and mutual funds were significantly higher than in Delhi, where pension plans and chit funds found relatively more takers.
Life insurance was viewed as a long-term investment option by nearly all the respondents (87 per cent), irrespective of the age at which they expected to retire. This was very different from mutual funds, in which an inverse relation between the propensity to invest and retirement age is observed.
Nineteen respondents wanted to invest in mutual funds before turning 50, 15 intended to invest between 50-60 years and four wanted to invest at the age of 60-70.
When asked whether the amount invested was enough for them to live comfortably through retirement, 41 per cent felt it was not enough while 42 per cent said it was enough to see them through retirement, though one out of every three respondents still felt apprehensions.
The apprehension level was significantly higher in Delhi compared with Mumbai and Bangalore. The remaining 16 per cent said the amount is more than sufficient.
Of the 300 respondents, 9 per cent desired to retire before 50, around 24 per cent did not wish to retire and 54 per cent wanted to retire before 60.
While in Mumbai and Delhi, two out of every three people said they would continue to lead an active life after retirement, it was different in Bangalore with two-thirds of the people saying they would prefer to lead a relaxed life after retirement.
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