Are Delhi, Bengaluru outpacing others in investment risk? Here’s what a report says

India's financial landscape is evolving rapidly but of course there will be divergence in how Indians invest - be it for income categories or different geographies.

MyFi, an AI-powered wealth management platform, has recently released a report that offers unique insights into the investment behaviours of over 7,000 users across different age groups, income levels, and geographic locations. The report provides a look at how geography plays a crucial role in shaping investment preferences and risk appetite across the country.

As the number of active mutual fund investors in India crosses 50 million, according to AMFI, it is clear that India is on the brink of a major wealth management revolution. MyFi’s report highlights key trends that align with expectations, such as younger investors tending to favour high-growth, high-risk assets while older investors prioritise wealth preservation.


Geographic trends highlight important differences in investment behaviour. Investors in Tier 1 cities like Bengaluru and Delhi tend to favour medium-risk investments, adopting a more balanced approach to risk. In contrast, investors from Tier 2 cities such as Jaipur and Nagpur show a greater inclination toward high-risk investments. This trend could be driven by local entrepreneurial ecosystems, evolving socio-economic conditions, or a stronger drive for wealth creation. Additionally, varying levels of financial education across regions may also influence these differing investment preferences.

Meanwhile, high-income earners, with annual incomes above ₹12 lakh, tend to favour high-risk investments, using their larger disposable income to seek higher returns. Middle-income individuals (₹5-12 lakh) take a more balanced approach, opting for medium-risk investments, while lower-income groups (₹0-5 lakh) prefer low-risk options, focusing on safeguarding their financial stability.