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A report released by RBI reveals that Indian household have invested Rs.1.80 lakh crore in mutual funds, which is 6.1% of their total savings in FY 2023.
In FY 2022, Indian households have invested Rs.1.60 lakh crore in mutual funds which was 6.2% of the total savings.
On the other hand, direct equity accounts for Rs.23,000 crore or 1% of the total household savings in FY 2023.
The report further reveals that Indians have put majority of their savings in banks. Bank deposits account for Rs.10 lakh crore or 35% of their total savings.
Next in the list is contribution towards provident funds. Indian households have put Rs.6.63 lakh crore or 22% of their total savings in provident and pension funds.
Life insurance is the third favorite instrument of Indian households. They put over Rs.5.34 lakh crore in life insurance policies, i.e.18% of their total savings.
Small savings schemes like PPF, Kisan Vikas Patra and Sukanya Samriddhi Yojana also score over mutual funds when it comes to household savings. These instrument account for over Rs.2 lakh crore of household savings as on FY 2023.
Overall, Indian households invested Rs.29.60 lakh crore in financial assets in FY 2023.
Let us look at the table to know more:
|
Bank deposits |
10,26,563 |
35% |
|
Non- bank deposits |
73,066 |
2% |
|
Life insurance |
5,34,820 |
18% |
|
Provident and Pension Funds |
6,63,028 |
22% |
|
Currency |
2,37,610 |
8% |
|
Mutual funds |
1,79,088 |
6% |
|
Equity |
23,038 |
1% |
|
Small Savings (excluding PPF) |
2,01,054 |
7% |
|
Financial assets |
29,59,051 |
|
