Indian households have 9% or Rs.17 lakh crore of their total financial assets till March 2021 in mutual funds, according to Usha Thorat, chairperson of SEBI's Mutual Fund Advisory Committee.
Thorat shared the data while addressing the Business Standard BFSI Insight Summit on Tuesday.
RBI data shows Indian household invest anywhere between 1-10% of their quarterly savings in mutual funds. In the third quarter of FY 2021, they invested Rs. 65,313 crore in mutual funds of the total Rs.6.93 lakh crore. The investment in mutual fund is 9.4% of the total savings.
The figure was much lower in the second quarter of FY 2021, when households invested just 1.6% or Rs. 11,909 crore in mutual funds.
Bank deposits receive the largest chunk of the savings. In Q3 FY 2022, they pocketed 25% of the savings, while in Q2 they received over 49%.
The performance of mutual funds in FY 2021 (till Q3) is comparatively better than the previous two financial years. In FY 2020, they received just 1.9% of the total savings. In FY 2019, it was 2.7%.
In FY 2021 (till Q3), the share of mutual funds was 6.6%.
In absolute terms, the inflow of household savings in mutual funds was Rs.1.43 lakh crore in the first three quarters of FY 2021. In whole of FY 2020, the figure was Rs.44,372 crore. In FY 2019, households had invested Rs.57,601 crore.
|
Flow of Financial Assets of Households |
|||||
|
Gross Financial Assets (₹ Crore) |
|||||
|
Item |
|
|
2020-21 |
||
|
2019-19 |
2019-20 |
Q1 |
Q2 |
Q3 |
|
|
Financial Assets |
21,34,068.0 |
22,84,563.0 |
7,38,208.1 |
7,46,821.4 |
6,93,001.8 |
|
of which: |
|
|
|||
|
Total Deposits |
8,10,138.7 |
8,65,490.5 |
1,25,848.6 |
3,67,264.2 |
1,73,042.0 |
|
Life Insurance Funds |
3,57,521.6 |
3,43,005.2 |
1,23,324.5 |
1,42,422.5 |
1,56,320.1 |
|
Provident and Pension Funds (including PPF) |
3,99,308.5 |
4,40,578.3 |
1,19,308.7 |
1,21,831.7 |
1,22,674.7 |
|
Investments |
79,979.8 |
80,338.6 |
85,893.1 |
21,134.2 |
72,565.5 |
|
of which: |
|
|
|||
|
Mutual Funds |
57,601.4 |
44,371.5 |
66,195.3 |
11,909.0 |
65,312.7 |
|
Equity |
6,382.4 |
26,733.7 |
18,599.2 |
8,291.5 |
5,307.1 |
|
Small Savings (excluding PPF) |
2,05,038.3 |
2,68,262.9 |
75,879.4 |
75,879.4 |
75,879.4 |
Source: RBI
