Indian households are moving beyond physical assets and bank deposits to explore mutual funds, insurance, and pensions
Net household financial savings surged to 11.7% of GDP in 2020-21, then fell to a low of 5.3% in 2022-23
Rising incomes, financial literacy, smartphones, and digital platforms are encouraging diverse investments
Urban households lean towards market-linked assets; rural households remain conservative
Mutual funds now form 6.1% of household savings, with folios increasing from 146M in 2022-23 to 178M in 2023-24
While risk capital lowers corporate costs, liquidity mismatches challenge banks, requiring strong regulatory oversight