The appetite for equity is increasing among Indian households if the RBI data is anything to go by.
The latest RBI data shows that household investments in shares and debentures have increased by 72% in FY 2015-16. Household investments in equities has grown from Rs. 53,300 crore in FY 2014-15 to Rs. 91,800 crore in FY 2015-16, an increase of Rs. 38,400 crore. Experts attributed this to the good performance of equity.
Meanwhile, household investments in other financial products like life insurance and pension funds have also increased. RBI data shows that while household investments in life insurance policies has increased by 10%, pension funds witnessed a growth of 3%.
Household investments in life insurance went up from Rs. 24,800 crore in FY 2014-15 to Rs. 27,300 crore in FY 2015-16. Similarly, investments in pension funds went up to Rs. 21,000 crore in FY 2015-16.
Overall, household investments in financial assets has witnessed a healthy growth last fiscal.
