PPF vs EPF vs Equity Mutual Fund: No.1 investment option for retirement planning revealed in a survey

Investment options for retirement planning in 2022: Equity mutual funds are the most popular financial instrument for retirement planning among Indians followed by Employees Provident Fund (EPF) and Public Provident Fund (PPF), according to a recent survey. 

The survey of over 1400 respondents aged 34-55 years by digital wealth manager Scripbox found that equity mutual funds were the number 1 choice, used by 75% of all respondents to invest for the golden years. The equity mutual funds were followed by EPF, used by 44% and PPF, voted for by 43%. Insurance as an investment option for retirement was picked only by 23% of all respondents. 

The findings of the Financial Freedom survey show that there is a growing understanding of insurance being more of protection and not an investment instrument. 

The survey, however, reveals a worrying trend as 80% of the respondents were unsure of their retirement planning. They were not confident about their plans post-retirement. The survey shows that there is higher awareness about long-term investing and an increased sense of achieving financial freedom among the respondents in 2022. However, there is a lack of preparedness around retirement planning, even though it was cited as the second most important priority, after financial planning. 

Other Key Findings

  • Increasing maturity towards financial planning: More than 75% of the respondents understand the value of having a  financial plan in achieving their life goals.
  • Maturity matched by action: 40% of the respondents said they prefer to seek the help of digital investment platforms, owing to the accuracy of technology and assistance in decision making. 
  • Not leaving financial planning to chance: The desire to not leave financial planning to chance has also been growing- a post-pandemic phenomenon. 32% of the respondents aim to have a financial plan to help meet their long-term goals.
  • Managing on their own: The study shows that 65% manage their finances on their own, and only 20% are considering getting professional advice. 
  • Saving for retirement: 62% of respondents have begun actively saving for retirement only after turning 30. 

Commenting on the findings of the survey, Atul Shinghal, Founder and CEO of Scripbox, said in a statement, “It is heartening to see more people understand the need to build a financial plan and focus on long-term goals such as retirement. Financial Freedom’ might mean different things to different people but is a long-term and significant goal which requires a trusted partner. Thus, it is always better to start investing from an early age with guidance, especially for retirement, as it provides you the cushion to take on more risk to fulfil all your dreams.” 

(Mutual funds investments are subject to market risks. Please consult your financial advisor before making any investment decision)

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