The overall AUM of retirement savings, insurance, and mutual funds grew at a 15 per cent CAGR which outpaced bank deposit CAGR of 9 per cent over the last ten years
One of the key positives of the high household savings rate is that it can help fund the domestic capex cycle without widening the country’s current account deficit
In its recent report, Goldman Sachs Economics Research brings to light the changing contours of India’s household savings over FY2005 to FY2023.
There is an ongoing trend of financialisation of household savings (moving away from physical assets such as real estate). Within this, individuals shifted from bank deposits to non-bank instruments. The overall assets under management of retirement savings, insurance, and mutual funds grew at a 15 per cent CAGR which outpaced bank deposit CAGR of 9 per