Indian households invested just 2% or Rs. 64,000 crore of the total savings in mutual funds in FY 2020-2021, shows latest RBI data.
The share of mutual funds in total household savings has remained at 2% for the second consecutive financial year. However, the total investment amount has gone up to Rs. 64,000 crore in FY 2020-2021 from Rs. 44,000 crore in FY 2019-2020.
Banks, life insurance, provident and pension funds received the biggest chunk of savings as usual. Bank alone secured 40% of the total savings at Rs. 12.2 lakh crore.
|
Instrument |
2018-19 |
2019-20 |
2020-21 |
% of total (FY 2021) |
|
Bank deposits |
777092.6 |
866677 |
1227873 |
39.49% |
|
Non-bank deposits |
33320.2 |
56748.5 |
39857.9 |
1.28% |
|
Life insurance funds |
392133.2 |
372257.5 |
520141 |
16.73% |
|
Provident and pension funds |
400086.7 |
455104.9 |
500824 |
16.11% |
|
Currency |
277872.1 |
282662.1 |
381976.1 |
12.29% |
|
Mutual funds |
151559.9 |
61685.7 |
64083.8 |
2.06% |
|
Equity |
6382.4 |
26737.8 |
38531.2 |
1.24% |
|
Small savings |
205038.3 |
263723.4 |
309526.3 |
9.96% |
|
Total savings and investments |
2263690.4 |
2399086.9 |
3108997 |
*All numbers are in Rs crore
Interestingly, deposits and investments went up across categories (except non-bank deposits) in FY 2020-2021. Bank deposits rose to Rs. 12.2 lakh crore from Rs. 8.6 lakh crore in the previous financial year. Investments in insurance funds surged from Rs. 3.7 lakh crore to Rs. 5.2 lakh crore.
As a result, the overall savings went up from Rs. 24 lakh crore in FY 2019-2020 to Rs. 31 lakh crore in FY 2020-2021.
In FY 2020-2021, savings rose across the globe as covid-induced curbs limited spending avenues. People also resorted to save more to build up emergency corpus in view of uncertain future due to the pandemic, say experts.
