Indian investors turn risk-averse in 2019, investments rise in FDs

The post-tax return from most fixed-income instruments marginally beats, or lags behind, the inflation rate

Indian investors turned more risk-averse in their investment choices in 2019 compared to the previous year, according to a survey conducted by UBS Global Research. The third urban consumer survey covering 1,064 participants found that respondents’ ownership of lower-volatility instruments like bank fixed deposits (FDs), post office savings schemes and pension plans rose. On the other hand, their ownership of riskier products like shares and equity, balanced, and debt mutual funds fell. 

Black swan events tend to trigger a flight to safety. “After the IL&FS episode and the subsequent challenges in the shadow banking space, there was a flight of capital