Financial Assets of Indian Households
Financial Assets are presently invested sub-optimally
- Fixed Deposits & Insurance constitute majority (over 50%) of Financial Assets of a typical indian household
- While Insurance & Fixed Deposits have their merits there should not be an overdependence on these asset classes
- Insurance – Non transparancy about expenses charged in endowment plans has entailed extremely poor returns & widespread customer frustration
- Fixed Deposits – Yield low post tax returtns as these are not tax efficient instruments
THERE IS ROOM TO SIGNIFICANTLY IMPROVE RETURNS!