Savers turn investors as bank deposits fall to 42% in 2024 from 53% in 2020: Uday Kotak

Calling it a rebalancing of household financial assets, Kotak advised investors to change their mindset as the future called for a holistic approach to financial services.

“Saver turns investor in a rebalance of household financial assets. Bank deposits move from 53% to 42% between 2020 and 2024. Future is a holistic approach to financial services. Time for mindset change,” Kotak tweeted.

The billionaire banker also shared a breakdown of major household financial assets.

The chart showed how investors have increased their exposure to equities, mutual funds and PMS/AIFs, which are considered to be more rewarding in terms of returns.

In 2024 so far, 12% of the investable money went into equities. This has been on the rise on a year-on-year basis since 2014. It was at 7% in 2014 and increased to 8% in 2015. In 2016, it came down by a percentage point only to go back to 8% over the next three years i.e. 2017-2019.The year of Covid-19 breakout, 2020, saw a climbdown to 6% but picked up again in 2021 to 9%. In 2022 and 2023, the equity share stood at 11% and 9%, respectively.Mutual funds and portfolio management services (PMS) also invest in equities and if this is taken into account, the equity investment numbers could go up further.

The chart shared by Kotak reveals that the share of mutual funds and PMS/AIFs in household financial assets has been growing since 2014. In 2024, mutual fund share stood at 11% versus 5% in 2014.

Uday Kotak Tweet

Saver turns investor in a rebalance of household financial assets. Bank deposits move from 53% to 42% between 2020 and 2024. Future is a holistic approach to financial services. Time for mindset change. pic.twitter.com/gFfMy3hIUa

— Uday Kotak (@udaykotak) September 17, 2024

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