Kotak called it a rebalancing of household financial assets and advised investors to change their mindset as the future demands a holistic approach to financial services.
“The saver becomes an investor in a rebalancing of household financial assets. Bank “Deposits will go from 53% to 42% between 2020 and 2024. The future is a holistic approach to financial services. Time for a mindset shift,” Kotak tweeted.
The billionaire banker also shared a breakdown of households’ top financial assets.
The chart shows how investors have increased their exposure to equities, mutual funds and PMS/AIF, which are considered more rewarding in terms of returns.
So far in 2024, 12% of investable money has gone into stocks. This figure has been increasing year on year since 2014. In 2014 it was 7% and in 2015 it rose to 8%. In 2016, it fell by 1.5%. percentage point In 2020, the year of the COVID-19 outbreak, the share of equity capital stood at 6%, but in 2021 it rose again to 9%. In 2022 and 2023, the share of equity capital stood at 11% and 9% respectively. Investment funds and portfolio management services (PMS) also invest in equities, and if this is taken into account, the investment figures for equities could increase even further.
The chart shared by Kotak reveals that the share of mutual funds and PMS/AIF in household financial assets has been growing since 2014. In 2024, the share of mutual funds will stand at 11% as against 5% in 2014.
Uday Kotak’s Tweet
The saver becomes an investor in a rebalancing of household financial assets. Bank deposits rise from 53% to 42% between 2020 and 2024. The future is a holistic approach to financial services. It is time for a change of mindset. image.twitter.com/gFfMy3hIUa
-Uday Kotak (@uday Kotak) September 17, 2024
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