Indians are quite thrifty and a lot of them have even started investing in equities, but the low level of insurance shows they are not prepared for unforeseen events.
An online survey conducted by ET Wealth earlier this month shows that three out of five respondents save more than 20% of their income. The survey had 1,270 respondents.
Investors have embraced equity investing: 43% of the respondents allocate more than 30% of their portfolio to stocks and equity mut ..
How much of your monthly income are you able to save?
As many as 85% of the respondents save more than 10% of their monthly income. Almost two out of three save more than 20%, which is what experts recommend one should ideally save.
How often do you rebalance your portfolio?
Two out of three respondents rebalance their portfolio. But rebalancing does not mean frequently churning the portfolio. Experts recommend rebalancing the portfolio once a year.
How much is your life insurance cover?
Of the 1,068 respondents with dependents, 69% are under-insured, including a staggering 20% with no insurance. Experts say one’s insurance cover should be at least 5-10 times one’s annual income.
How much of your portfolio is allocated to stocks and equity mutual funds?
Equity investment has become an integral part of people’s wealth generation strategy: 83% of the respondent have invested either in stocks or equity mutual funds.
In a medical emergency, how will you pay?
Just three out of 10 respondents have both individual and group insurance. Financial planners recommend that besides the employer-provided health cover, one must have an individual cover as well.
How big is your emergency fund?
A sudden financial crisis can hit anyone. Yet, a majority of the respondents, 58%, do not have a sizeable emergency fund. One’s emergency fund should be equal to at least six months’ income, say experts.
With assistance by Vinay Dwivedi