No gold or FD bank, Jefferies considers this asset Indians best investment

Amid soaring inflation and concerns about the downturn, investors are busy finding a safe haven for their money. While some are fighting in favor of gold, some investors favor short-term debt instruments like fixed bank deposits (FD) and other deposits. But, according to Jefferies’ findings, about half of Indian household savings in March 2022 were invested in real estate, while bank deposits and gold are by far the second and third. Indian household’s most preferred asset investment options.

According to Jefferies’ findings, out of $10.7 trillion in Indian household assets as of March 2022, 49.4% was invested in real estate, while 15.10% went into strip deposits, 15 % of Indian household savings were invested in gold. The impact of the Covid-19 pandemic was also visible in this Jefferies report, as Indian households invested 6.20% of their net savings in insurance funds and this was the fourth option for favorite investment of Indians.

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Photo: Courtesy of Jefferies

Provident funds and pensions rank 5th after receiving 5.70% of the $10.70 trillion in Indian household savings in March 2022. Despite strong sales of FIIs in Indian stock markets, DIIs are remained net buyers since Oct 2021. 4.80% of Indian household net savings in March 2022 and it is the 6th preferred investment option of Indians. Because Indian households are used to keeping part of their savings in liquid form.

The Jefferies report also mentions it. According to Jefferies’ findings, 3.50% of net savings of Indian households during this period went to the cash or liquid segment, which is obviously the least preferred option for Indian households.

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Michael J. Birnbaum