In some ways, the Indian millennial is like his or her parents. In other ways, he or she is different. But what does the Indian millennial want from the life? What are his/her aspirations? We did a survey of more than 1,500 Indian millennials — salaried men and women between the ages of 25 and 35 living in six metros and six non-metros who had done at least one online transaction in the last one month. We asked them questions on six broad aspirations — wealth, image fame, relationships, growth, and health. We asked them what was important to them, how likely they are to achieve that goal, and what progress they have already made towards achieving the goal. We called the survey the Aspiration Index. And here’s what we learnt about them.
SOUTH INDIANS HAVE BIGGER ASPIRATIONS
South India is marginally ahead of its counterparts, with a score of 88.57 on the Aspiration Index. The three South Indian cities surveyed — Chennai (88.86), Hyderabad (88.29), and Bengaluru (88.29) — had the highest scores. The only two other cities with scores of 88 or more were Lucknow (88) and Jaipur (88.57). What helped the South was a high emphasis on money-related goals and lesser focus on goals that don’t create wealth. For example, 52 per cent of Lucknow residents said following the latest fashion was the most important goal for them.
CHENNAI LEADS IN HOME BUYING ASPIRATION
In Chennai, 77 per cent of those surveyed said their most important aspiration was buying a home. In South, we observed that there was a greater need to save, invest and create wealth. In Chennai, the readiness gap — the gap between the aspiration and the aspirant's current readiness for achieving it — was also very low at just 9 per cent. This indicates that Chennaiites are not just aspiring to be house owners, their readiness for home purchase is at an advanced stage compared to, say, Pune where the home-buying readiness gap is at 25%, the highest of the 12 cities.
56% MILLENNIALS FAVOUR MUTUAL FUNDS
Over the years, we have seen the Indian investor smarten up and make better investment choices. From traditional options like endowment plans, gold, and real estate, the millennial is seen favouring mutual funds. Of those surveyed, 72 per cent said they have a life insurance policy, and 57 per cent said they have fixed deposits. However, mutual funds, which have a low overall penetration in India, is favoured by 56 per cent of the group surveyed, indicating that millennials have a much higher preference for this method of investing than the rest of the country. The Indian millennial has realised that mutual funds offer greater ease of investing, and the potential for returns is higher. Not just that, 91 per cent millennials said they manage their own taxes, investment planning, versus the nine per cent who either trust a family member to help them or who leave it to a CA or bank manager.
WOMEN HAVE HIGHER ASPIRATIONS
Women scored marginally better on the Aspiration Index than man. While India’s young women scored 87.43, men trailed at 86.29. We also see a split between metro compared non-metro — the metros are marginally ahead at 86.86; and those married without kids scored 86.71 than those married with kids at 83.14.
HEALTH ASPIRATIONS ARE LOW
One of the troubling trends that emerged from the survey is that the Indian millennial seems unsure about his health aspirations. Health as an aspiration is the fourth-most important, with 66 per cent Indian millennials voting for it. However, the readiness gap is a worry. Only 53 per cent said they are ready to attain their health aspirations, which specifically were being physically fit and mentally sharp and having a fixed regime to improve health. Compared to his predecessors, the Indian millennial will also have to deal with lifestyle diseases, greater exposure to pollution, and urban stress.
(The writer is CEO, BankBazaar.com)
