Winning Bizness Desk
Mumbai. Equity investment in the country may be growing rapidly, but the most trusted asset is still real estate. Till March this year, the total assets of Indian households were around Rs 851 lakh crore and half of this is engaged in property. More than 15% of savings are in the form of gold and the same in bank deposits. Equity ranks fifth in this case.
Most trusted asset is still real estate
According to a report by investment banker Jefferies, Indians have invested 49.4% in property. Less than 5% is invested in equities. Indians have less faith in equities than in insurance funds and bank deposits. Their investments in these asset classes are 6.2% and 15.1% respectively. Lowest investment in PF and Pension. According to experts, this could be because there are fewer organized sector jobs in India, where such investments are not required to be made separately.
Indians do not trust financial companies
According to Kotak Securities, most Indians do not trust financial companies. People feel that they have less control over such assets. The reason for this is often huge fluctuations in the stock market. This is the reason why they avoid investing in financial instruments like equities.
Fast changing investment trends
Research Head, LKP Securities S. Ranganathan said the number of Indians investing in equities has increased rapidly in the recent past. The four-fold increase in the demat account in the last 8 years is a sign of this. He said that this trend will pick up in the coming years and a major part of the money invested in property will come in equities.
