Highest equity allocations come in a disappointing year for indices

Broader market gave negative returns despite allocations touching record levels since 1970-71

The biggest-ever allocation to financial savings since at least 1970-71 has come in a less-than-spectacular year for equity returns.

The Reserve Bank of India’s data on changes in financial savings for 2017-18 (FY18) shows that total allocation to shares and debentures (under which equities are classified) was up by Rs 1.51 trillion. This is the biggest single-year change since at least 1970-71. The previous biggest such allocation was Rs 74,308 crore in 2007-08. The year 2008-09 saw markets crashing after the global financial crises hit India.

Numbers for the current financial year (FY19) show that equity returns have been lower than previous