1/n
A short thread on Indian Household Finance
Percentage of Households having exposure to equity
USA
Direct stock
60s 40%
80s 25%
90s 17%
MFs
80s 70%
90s 43%
(Lynch)
India
One of the lowest in the world at ~14% as per MOSL vs 45% of US.
Whereas RBI quotes <10% in Jun 20.
2/n
We are close to 80% invested in Real Estate and drowning in unsecured debt.
3/n
Only 13% save for retirement
And over 50% think their children will help in retirement
4/n
96% of people seek Financial advice amongst family & friends.
5/n
Median household wealth is 5.6 lakhs.
Income Tax return analysis of a few years ago concludes that if you earned over 16 lakhs you are in 99th percentile of tax filers.
6/n
Financial assets is negligible as we progress with age.
7/n
But we invest on and on in real estate as we age.
8/n
We fund our real estate my mortgages even as we grow old and not much from our other investements.
We love real estate!
9/n
We anyways have one of the highest unsecured debt. But we reduce that as we age.
10/n
Insurance?
What's the heck is that?
Who needs it?
Who cares?
Our attitude summarized above.
11/n
We lack basic financial numeracy compared to developed countries.
Sources: RBI, MOSL, Peter Lynch, DBIE
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