A short thread on Indian Household Finance

Percentage of Households having exposure to equity

Direct stock
60s 40%
80s 25%
90s 17%

80s 70%
90s 43%

One of the lowest in the world at ~14% as per MOSL vs 45% of US.

Whereas RBI quotes <10% in Jun 20.

We are close to 80% invested in Real Estate and drowning in unsecured debt.

Only 13% save for retirement

And over 50% think their children will help in retirement

96% of people seek Financial advice amongst family & friends.

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.

Financial assets is negligible as we progress with age.

But we invest on and on in real estate as we age.

We fund our real estate my mortgages even as we grow old and not much from our other investements.

We love real estate!

We anyways have one of the highest unsecured debt. But we reduce that as we age.


What's the heck is that?
Who needs it?
Who cares?

Our attitude summarized above.

We lack basic financial numeracy compared to developed countries.
Sources: RBI, MOSL, Peter Lynch, DBIE

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10 Jun

Very Critical

1/ Adding somethings which I have done in this thread. Maybe not the perfect thing but helps.
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And let those nominees know. How?

Make a consolidated mail for them. And tag that mail in their inbox. For instance my wife has a tab "DV" & color code it. Do this for your sibling & parents if possible
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