InvestorQ : What changes have taken place in the personal finance industry in the last decade?
Diya Chitale made post

What changes have taken place in the personal finance industry in the last decade?

Answer
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7 months ago


It is 2020, which means the beginning of a new decade, and a lot has been changed in the personal finance industry in the gone decade. Let us take a look at few:
  1. There’s huge awareness about mutual funds: These days the awareness about mutual funds has suddenly increased. It has been 25 years since mutual funds have launched, but at that time they were not very famous. Mutual funds were big push products and for the past few years, there were constant campaigns to spread awareness among the investors.
  2. People want to buy term plan now: Term plans are high in demand these days for insurance purposes. They have become quite famous among the investors as now everyone knows that they will have to buy term plans to meet their insurance needs.
  3. Trust issues resolved with ULIPs: When the ULIPs were launched there were many complaints about the ULIPs were missold and the investors were not getting back their money.
  4. Dependence on Loans has increased: The usage of credit has severely increased for various things in life in the last decade. It is not just dependence on the credit, it is over-dependence.
  5. More choices have increased and so the confusion: As compared to the past 10 years investors have too many products and services and many people are claiming to work for investor’s interest. While they have too many options, they are also confused about the choice of the right product.
  6. More spending on lifestyle: These days’ people have shifted from being savers to ‘spender’s first and saver’s later’.
  7. Online wallets + cash backs are a way of life: In the last 10 years, there has been great increase and development in the field of online business and various sites. Basically, in metro cities, you can get almost everything delivered at your doorstep and pay through your cards and various apps have been developed to support that. All these apps brought the concept of online wallets and cashback which in my opinion is doing more harm to us than helping us. It’s more of a marketing tactic and making sure that clients are always in the maze of collecting points/cash back to spend it for the next order.