Personal Finance Trends from 2010 to 2020 in India

Personal finance is managing your money so as to meet your personal expenses. It is everything related to budgeting, investment, savings, retirement planning and living a good life. It is financial planning which also consists of real estate and tax planning. Within the last 10 years, an increase in financial and investment firms has occurred in India who are offering amazing investment opportunities and money management services to all. Furthermore, there are also financial firms who are offering services to customers regarding which loan to choose. They also negotiate on the interest rates offered by banks on behalf of the customers so that the customer will get a low interest-bearing loan. Not only they advise and negotiate but they also help in the process of loan approval and loan disbursement.

Here are the trends that had occurred in the Personal Finance industry in India form 2010 to 2020.

Increase in Investment Products

People have now started investing in shares, mutual funds, and property at an incredible rate. This has happened because of the awareness created by various investment banks regarding the benefits of investing in the money growing financial instruments. Furthermore, due to the offering of low-cost plot loan by banks to buy the plot as an investment opportuning, there has been seen a rise in plot investment in India during the period between 2010-2020.

Due to digitalization in India, buying and selling of shares has become easy and also because of the availability of various trading tools and trading knowledge, an increase in the number of traders has been seen in the last 10 years.

Easy and Affordable availability of Loans

Due to various job opportunities and steady income, people have started taking loans to have the standard of living which they deserve. Also, due to the increase in the numbers of banks in last 10 years has resulted in a tough competition among them to get the customers, this has resulted in offering personal loans and home loans having lower interest rates.

People are getting affordable personal loans to enjoy the pleasent lifestyle consisting of travelling the world and having the latest gadgets. There was a little awareness of a travel loan before 2010, but now people know about it and want to roam the world and as a result, an increase has been seen in the customers taking a personal loan in 2020 as compared to 2010.

Furthermore, due to digitalization in India, the loan application process has become very easy and quick.

Change from hard assets to soft assets

Gone those days when people used to invest only in gold and real estates. Due to a lot of amazing easy availability of investment options created within the last 10 years in India, people have now started investing in soft assets. There has been seen a positive rise in the number of people investing in mutual funds, shares, fixed deposits, government bonds, public provident funds, etc.

Increase in buying Insurance Policies

Due to huge marketing efforts and awareness caused by the insurance companies, people have started buying Insurance. People have realized the security that they can get because of insurance. They have trust that if anything bad happens to them, insurance companies will be there to take care of it.

Moreover, due to the government making vehicle insurance compulsory, there has been seen an increase in the number of an insurance policy being taken by the vehicle owners. Whenever one buys a car or a bike, an insurance policy is generated too. You can say that within the last ten years, with a sale of every vehicle, an insurance company grows.

Due to alarming health cost, people have started to make their life insurance policy and this has resulted in an increase in the percentage of people being health insured within the last 10 years.

Increase in ULIP Holders

Unit-linked Insurance Plan is a unique type of plan that has a fusion of insurance policy and investment policy. Amount of premium is distributed into insurance coverage and equity plus debt instruments. Here, the policyholder will be insured as well as can get good returns on the investment.

Furthermore, Unit-linked Insurance Plans have tax benefits up to a maximum of Rs 1.5 lacs under Section 80C of the Income Tax Act. Besides this tax benefit, the other reasons for the increase in ULIP holders are low charges and good returns on investment as compared to other investment options like mutual funds. It is also to be noted that mutual funds don’t have any tax benefit hence, people are opting more for ULIP.

Conclusion

The year between 2010 and 2020 has seen a growth in the number of people opting for investment and insurance avenues. Furthermore, due to competition between the banks to attract customers with regards to loans, customers are able to get it at a low cost. Hence the standard of living of people is improving as they are able to fulfil their wishes like of having a home or buying a plot or going for a tour abroad or having the dreamed wedding.

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