International Journal of Scientific Research and Engineering Development

Many Indian households know about investing and saving, but very few actually do it. This research paper looks at why financially aware Indians fail to build long-term wealth. Using data from 850 respondents across India and official reports from SEBI, AMFI, and RBI, we found that the main problem is NOT lack of information. Instead, it's about behavioral issues like fear of losses, lack of discipline, and not having clear financial goals.
Our key findings show:
63% of Indians know about investment options, but only 9.5% actually invest
60% of people who start investing stop within the first year
Household savings dropped from 11.5% to 5.1% of income in just three years
The average person loses about ₹42.8 lakh in wealth by stopping their investment plans too early
Fear of losing money is the biggest reason people don't invest (73% cite this)
People lack clear financial goals (61% have no specific targets)
Impulse spending averages ₹4,200 per month among middle-income households
This paper shows that awareness and access are not enough. To build wealth, Indians need three things: behavioral discipline, simple investment systems, and personal accountability. We suggest that schools, workplaces, and investment platforms should help people stick to their investment goals through automation and goal-setting.

Shweta Kisana Gawali, Soham Wadke, Sejal Mehta, "From Awareness to Action: Why Financially Aware Indians Still Fail to Build Long-Term Wealth" International Journal of Scientific Research and Engineering Development, V8(6): Page(2817-2821) Nov-Dec 2025. ISSN: 2581-7175. www.ijsred.com. Published by Scientific and Academic Research Publishing.