12 vritti September 2017
Technically Speaking
Penetration of funds is much lower in Asia AUM / GDP ratio ( 2015 ) 114 %
91 % 70 %
63 % 53 %
51 % 49 %
38 %
30 % 9 % 11 %
23 %
Americas Europe Asia - Pacific
7 % 11 %
The US |
Canada |
Brazil |
|
|
|
|
|
|
|
Mexico |
France |
The UK
Switzerland
|
Germany |
Australia |
Japan |
China
Korea
India
Taiwan
Source : EFAMA , Oxford Economics
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In the context of India experiencing rapid economic growth , and with the regulatory & financial sector reforms , there has been a shift in consumer spend from physical assets to financial assets . However , majority of this shift is funneling as investments / savings in to Bank deposits .
Bank Deposits Insurance linked products Mutual funds
100 lakh crores 40-45 lakh crores ~ 6 lakh crores
The lack of affinity for investment classes other than Bank deposits is primarily two-fold :
a
Lack of awareness on the investors front
Most investors find them complicated due to lack of complete understanding
Past generations preferences towards low-return , risk-free deposits
b Lack of supply - current distribution is heavily biased in major metro cities
Years of Experience
34.95 %
22.79 %
Mumbai |
Delhi |
7 % |
Bangalore |
8 % |
Pune |
6 % |
Chennai |
5 % |
Kolkatta |
4 % |
Hyderabad |
4 % |
36 %
Share of total CFPs
|
0 - 5 years 6 - 10 years 11 - 15 years
16 - 20 years above 20 years
|
|
|
|
Total top 8 Other cities |
|
|
26 %
74 %
Source : FPSB India , Annual Report 2015-16