Mutual funds, precious metals top investment tools for Indian online consumers- Nielsen survey

Mumbai: According to a study by market research firm Nielsen, over two in five online Indian consumers make investments in some form or the other. While 64% of them made investments in mutual funds, 63% of them pumped in their savings into precious metals while 56% of investments were made in stocks and 40% in bonds making up the top four favoured asset classes for the purpose of investments by online Indian consumers.

The Nielsen global survey of investment attitudes surveyed more than 28,000 internet respondents in 56 countries and showed that in India, online consumers make their own decisions when it comes to investments.

Around 16% of respondents indicated they would take the advice of friends, relatives and colleagues while making financial decisions.

"As opposed to the average Indian customer, online consumers in India appear to be far less dependent on others in decision exhibiting a marked independence in being self sufficient, and not entirely trusting of people around them." said Subhash Chandra , director, Nielsen India.

The increasing popularity of mutual funds as an important investment tool is fuelled by the aware online consumer, who sees great benefit in systematic investment plans on offer now, Chandra said.The Indian consumer continues to be enamoured by precious metals for traditional purposes, as well as investments, as they are seen to be profitable over the years.

According to the survey, almost four of five (77%) of online consumers in India conducted their transactions at the branch of their favoured bank. About 68% of respondents said they used online banking facilities, while 42% used the mobile phone for their banking needs.

Less than two in five (37%) of online respondents indicated that they use the landline phone or financial planners for their banking and investment needs.

When it comes to paying for general shopping, dining, traveling or entertainment, online consumers in India prefer to pay by cash (78%), followed by payments via debit cards (56%). Less than two in five (37%) of the respondents indicated they used credit cards, the surbey findings said.