With the Indian economy growing at an exponential rate, it is no surprise that the personal finance sector is booming.

From the introduction of UPI to the emergence of innovative new products, the Indian personal finance space is evolving at a rapid pace. There are some exciting personal finance trends to look out for in India in 2023.

1) Buy Now Pay Later (BNPL)

Buy Now Pay Later (BNPL) is a new and growing trend in the formal Indian economy. “This is an increasingly popular payment option that allows users to purchase goods and services today and pay for them later, making it a great way for people to manage their finances in the short term,” said Amit Gupta, MD, SAG Infotech. According to top Ashish Aggarwal, Director, Spacemantra, BNPL usage is expected to rise in the near/medium term. Credit losses, on the other hand, are expected to climb significantly, and the sector is likely to start losing its uncontrolled social standing in several market segments. As a result, rapid growth is viewed as a short-term concept rather than a long-term game changer.

2) Exchange Traded Funds (ETFs)

Amit Gupta said ETFs are low-cost, diversified investments that provide investors with the ability to invest in a variety of assets without having to choose individual stocks.

3) Real estate investment

The appeal of owning a home as a long-term investment is stronger than ever. Suren Goyal, Partner, RPS Group said as people began to realise the value of real estate investment, secondary home purchases increased in 2022. It was also a period of market vulnerability, and while all other assets struggled, real estate remained strong. This has given it the appearance of a safe and secure investment.

Its low volatility and higher expected returns are also appealing to investors. Real estate as an investment option is expected to grow in 2023, he added.

4) Neobanks

Neobanks are digital-only banks that are built entirely on digital platforms. These banking platforms provide customers with an array of services such as online payments, deposits, remittances, and credit cards.

5) Cryptocurrency

A cryptocurrency is a digital form of money that is secured using cryptography and can be used to make payments or store value.

6) P2P lending

P2P lending is a decentralized credit system that allows borrowers and lenders to transact with each other directly, said Amit Gupta.

7) Stock markets

Trying to time the market in real life is an easy way to set your money on fire metaphorically. Remember that “time in the market is more important than time out of the market.”
Investing in great companies through ups and downs benefits your portfolio, said Amber Pabreja, Founder and CEO of Trendlyne.

“Don’t buy all at once, and don’t be all in on one stock/sector, Good investing advice is a bit like good diet advice: everything in moderation (and avoid the terrible stuff),” Amber said.

If you are investing in a stock, buy it in periodic chunks, and keep your portfolio diversified. This will help manage your risks in the case of an unexpected downturn in one stock or sector, he added.