Calling it a rebalancing of household financial assets, Kotak advised investors to change their mindset as the future requires a holistic approach to financial services.
“Savers become investors in a rebalancing of household financial assets. Bank deposits from 53% to 42% between 2020 and 2024. The future is a holistic approach to financial services. Time for a mindset change,” Kotak tweeted.
The billionaire banker also shared the breakdown of major household financial assets.
The chart shows how investors have increased their exposure to equities, mutual funds and PMS/AIFs, which are considered more rewarding in terms of returns.
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So far in 2024, 12% of investable money has gone into equities. This has been increasing annually since 2014. It was 7% in 2014 and increased to 8% in 2015. In 2016, it fell by a percentage point to just over 8%. Next three years ie 2017-2019.
The year of the Covid-19 breakout, 2020, climbed to 6%, but fell back to 9% in 2021. In 2022 and 2023, the equity share was 11% and 9% respectively.
Mutual funds and portfolio management services (PMS) also invest in equities and if these are taken into account, the equity investment number may increase further.
A chart shared by Kotak shows that the share of mutual funds and PMS/AIFs in household financial assets has been increasing since 2014. In 2024, the share of mutual funds was 11% against 5% in 2014.
Uday Kotak tweet
A saver becomes an investor in rebalancing the household’s financial assets. Bank deposits increased from 53% to 42% between 2020 and 2024. The future is a holistic approach to financial services. Time for a mindset change. pic.twitter.com/gFfMy3hIUa
— Uday Kotak (@udaykotak) September 17, 2024
(Disclaimer: Recommendations, suggestions, opinions and views given by experts are their own. These do not represent the views of Economic Times)
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