There's something to be said about the saving and investing habits of Indians. Surprising as they may be, they have a logic that remains unseen in the short term, but when you zoom out and see the big picture, that logic, however peculiar, comes to life. Data in the Reserve Bank of India’s 2005-06 annual report released on Thursday is one such and I’m surprised it’s gone unnoticed, unreported.
Tucked away in the appendices are a set of statistics that reveal the mind of Indian investors. The percentage of household savings that went to shares and debentures in financial year (FY) 2006 rose from 1.1 per cent to 4.9 per cent. This 3.8 percentage point increase is the highest over the past six years. And the champagne corks are out in offices of non-UTI mutual funds whose share increased by 3.2 percentage points, the highest ever, though I suspect it’s more to do with smart marketing of NFOs than with great performance.
Opinion in The Indian Express, September 04, 2006