Traditionally, Indians have favoured physical assets like gold and real estate as a means of securing their financial future. Bank fixed deposits, known for their stability, were also a preferred choice among financial instruments. However, the past few years have witnessed a significant paradigm shift in the investment behaviour of individual investors. A remarkable trend has emerged wherein there is a decline in investments in physical assets and a simultaneous surge in investments in financial assets, particularly equity and mutual funds.
This shift reflects the growing ‘financial trend’ of household savings in India, with a notable preference for financial instruments offering potentially higher returns and diversification benefits. Among these financial instruments, equity and mutual funds have emerged as the frontrunners, capturing the attention and trust of retail investors seeking avenues for wealth creation. This trend is evident in the industry’s assets under management (AUM), which have risen to constitute 79 per cent of bank fixed deposits, a significant leap from 59 per cent recorded five years ago.
It signals a departure from traditional banking products towards equity and mutual funds. Mutual funds, in particular, have emerged as the preferred investment vehicle among retail investors, evident from the exponential growth in the number of folios and accounts over the past few years. Since December 2014, the number of investor accounts has witnessed a steady upward trajectory, soaring from ₹4.03 crore to ₹16.49 crore by December 2023. The acceleration in growth, especially since 2020, highlights the increasing adoption of mutual funds as a wealth-building tool.
Bu hikaye Dalal Street Investment Journal dergisinin February 26, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber ? Giriş Yap
Bu hikaye Dalal Street Investment Journal dergisinin February 26, 2024 sayısından alınmıştır.
Start your 7-day Magzter GOLD free trial to access thousands of curated premium stories, and 9,000+ magazines and newspapers.
Already a subscriber? Giriş Yap
How To Invest In An Ageing Bull Market
Bull rallies (periods when stock prices rise) and bear declines (periods when stock prices fall) are natural parts of stock market cycles, but they don't follow a fixed timeline.
Should You Entrust All Your Money To A Single AMC?
If you are a market participant, you have probably heard the quote 'don't put all your eggs in one basket', which suggests diversification. Investors often focus on diversifying across categories like large-cap, mid-cap and small-cap, but they may unintentionally overlook diversification across different AMCs. The question arises: is AMC-wise diversification really necessary? Rakesh Deshmukh takes a closer look at this scenario
Wild Swings Engulf Global Equities
U.S. stock markets experienced significant volatility. An early-week rally pushed the markets to new highs, but this momentum faded, primarily due to weaknesses in the tech sector. The major indices had a mixed finish with, S&P 500 and Nasdaq closed lower, while the Dow recorded a notable gain.
U.S. Elections and China's Economy Hamper Commodities
Commodity markets experienced selling pressure in the last fortnight, driven by uncertainties surrounding the upcoming U.S. presidential elections, concerns about the Chinese economy, and increased agricultural production in Brazil.
Wealth Building For Retirement Through Mutual Funds
Retirement is one of the most crucial and lifechanging phases. It marks a period where maintaining your lifestyle becomes paramount even though your regular income stops.
Mastering Investment with Information Ratio
Information Ratio helps in navigating the complexities of the investment landscape by assessing an active fund manager's performance. And though it has its limitations, it remains an essential part of the finance industry. The article explains what Information Ratio is and how investors can use it as another tool
Plan To Be Financially Independent
Each of us aspires to be financially independent as it ensures having enough resources to be self-sufficient and control our finances.
❝Technology is the new game-changer"
With a new breed of young investors entering the financial markets, it is the use of technology that is increasingly playing a major role in how investments are done and tracked. Anand Radhakrishnan, Managing Director, Sundaram Mutual Fund, shares his opinion about how this factor is turning into a significant tool and how it will shape the strategies of his company
What If Donald Trumps?
The potential election of Donald Trump as president in the U.S. carries significant implications for the Indian equity market. It could lead to changes in the global trade dynamics, in particular affecting the Indian IT sector while also raising inflation levels and leading to yet another revision in the visa programme for Indians who want to work in the US. The article takes a closer look at what may lie in store
Sectoral Gains Make A Mark
Benchmark indices continued their uptrend, reaching new record highs, although the pace has slowed as the broader markets faced selling pressures
