Where do Indians invest?
OF THE 1.1 BILLION INDIANS;
BUT A SIZEABLE CHUNK IS WAITING TO BE TAPPED
FEW ARE ATTEMPTING RETIREMENT PLANNING
- 4.5 mn participate in equity markets
- 33%of earners own life insurance policies
- 20 mn will buy life insurance in 2008
- 11 mn plan to buy residential property soon
- 5.7 mn is the retail mutual fund base
- 18 mn individuals have some form of investments
WITH SOME OPTING FOR NON-MAINSTREAM INVESTMENT OPTIONS
- 6% of 321 mn working-age Indians buy gold purely as an investment option
- 82% of all consumer loans are from money lenders and friends
- $6.4 bn of retail savings in gold in 2006-07
BUT A SIZEABLE CHUNK IS WAITING TO BE TAPPED
- Rs 57,000 cr is the latent demand for voluntary retirement savings
- 79 mn are willing to join NPS on a voluntary minimum SIP basis
- 144 mn have incomes, but no bank accounts
- $35 bn is the annual savings potential of low-income investors
- Rs 2,268 cr is the informal savings kitty
- Rs 2.3 bn is held as savings in self help groups
- 18% of those aware of mutual funds are already investing in them
- 25% is the increase in aggregate earnings in the last 3 years
FOR WHICH SOME STEPS ARE NEEDED
- 87%of the latent demand can be served through post offices and banks’ networks
- By 2020, the private pension market is expected to grow to $300 bn
Comments