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Indians Invest in FD: A recent survey has found that FDs have become the first choice for investors to hedge against market volatility. Nearly half the people (over 44%) said they invested in FDs when they needed money within three years with complete security. Another 23% said they have invested in FDs to create an emergency fund to beat inflation. The survey conducted by Kuvera, an online investment and financial planning platform, surveyed nearly 16 lakh investors to understand the reasons behind the popularity of FDs among Indians. Commenting on the survey findings, Gaurav Rastogi, Co-Founder, Kuvera said that FDs are very popular among Indians and we are ready to understand why. Unsurprisingly, the simplicity of FDs and the assurance of safety attract investors towards FDs. This is an effective way of protecting emergency funds from market volatility and a large section of our investors agree with this.
What did SEBI find?
In 2017, SEBI conducted a survey to understand the behavior of investors. It was found that more than 95% of the households preferred to keep their funds in fixed deposits while only 10% preferred mutual funds and stocks. In fact, according to data from the Reserve Bank of India (RBI), total bank deposits reached an all-time high of USD 2,242.775 billion in March 2022.
The Kuvera survey found that more than one in five people are turning to FDs to build up an emergency fund to beat inflation. Around 12% investors preferred FD for its simplicity and familiarity and one in 10 invested in FD for protection against market volatility. Let us tell you that with the increase in repo rates by RBI to beat inflation, now is a good time to invest in FD.
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