Indian households’ investment in mutual funds stood at Rs 11.60 lakh crore as of March 2020. This accounts for nearly 7% of Indian households’ total investments that stood at Rs.167.20 lakh crore, shows a research report by CRISIL.
The report shows that investment in mutual funds have risen in the last 3 financial years to Rs 13.90 lakh crore or 8.5% of total Indian household investments at the end of December 2019. But it has come down in the last quarter of FY 2020, at a time when the equity markets started correcting.
Bank deposits remains the most favoured vehicle for Indian households with Rs 94.40 lakh crore or 56.5% of their total assets as of March 2020. Next in the list is life insurance funds with Rs 38.80 lakh crore or 23% of total assets. Currency holdings followed the list with Rs 22.30 lakh crore or 13.4% of total assets of Indian households.
|
Rs lakh crore |
FY 18 |
FY 19 |
FY 20 |
|||||||||
|
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
Q1 |
Q2 |
Q3 |
Q4 |
|
|
Bank deposits |
74.1 |
76.5 |
75.9 |
79.9 |
79.2 |
82.2 |
82.3 |
87.3 |
86.8 |
89.6 |
90.6 |
94.4 |
|
Life insurance funds |
29.4 |
30.4 |
31.7 |
32.1 |
32.7 |
33.6 |
34.1 |
35.6 |
36.5 |
36.9 |
37.9 |
38.8 |
|
Currency funds |
13.8 |
14.2 |
15.3 |
16.7 |
17.8 |
17.5 |
18.5 |
19.5 |
20.1 |
19.8 |
20.7 |
22.3 |
|
Mutual funds |
9.5 |
10.2 |
10.6 |
10.7 |
11.9 |
11.5 |
11.9 |
12.4 |
12.7 |
12.8 |
13.9 |
11.6 |
The report said that the domestic financial market is expected to continue to grow at a healthy pace owing to strong demand-side and supply-side drivers such as expected growth of the Indian economy, increasing urbanisation and rising consumerism because of higher per capita incomes. This implies market growth potential for established financial service providers in India.
