India is a diversified finance market, driven by consumer sentiment and investment in retail assets. When we talk of consumerism, it can be perceived in context of both asset buying and also, intangible value attached to investments done by individuals. Indian investment growth has been propelled by the economic growth; which meant more disposable income on one hand and on the other; it meant adapting to a lifestyle. Caught between the paradox situation of rising inflation and new means of economic spending; there was a definite change happening in context of financial investments. People were investing in all forms to secure their future, for their loved ones or have a post-retirement lifestyle on their own terms. This led to change in the fundamental approach towards savings to investment. People were gradually becoming more financially literate, knowing exactly where to invest.
India has a large base of population, so there are diversified financial needs. This has led to a resurgence of activity in traditional modes of investments. Such as, investment in buying home- by younger generation, and also, from all corners in India. Due to an increase in life expectancy, life insurance companies gained momentum. Smaller financial entities entered the semi-urban and rural areas to tap the growing potential there. Besides, an aspirational middle- class economy of India emerged, which wanted to possess all that luxury they can really afford.
By all means, India’s financial economy was gaining traction, with people investing to secure their future, using various financial instruments. There is also a notable increase in the risk appetite of individuals. Mutual funds investments were made, with impeccable knowledge about the startup world and stock markets. Real estate investments, amid all its uncertainty of right projection to the buyers, has been handled with legal caution.
It won’t be an exaggeration to say that with changing times, consumer has become more open-minded towards investment. Housing as an asset presents an opportunity in sphere of affordable housing option schemes. At the same time, mutual funds stock investment is being handled with help of financial advisors. In between lies all that is required to secure an aspirational lifestyle, for present and future both.
• The Association of Mutual Funds in India (AMFI) data show that assets of the mutual fund industry have reached a size of Rs14.21 trillion (US$ 210 billion)
• During April 2015 to March 2016 period, the life insurance industry recorded a new premium income of Rs 1.38 trillion (US$ 20.54 billion), indicating a growth rate of 22.5 per cent over the previous year
• The general insurance industry recorded a 12 per cent growth year-on- year in Gross Direct Premium underwritten in April 2016 at Rs105.25 billion (US$ 1.55 billion)
• India’s life insurance sector is the biggest in the world with about 360 million policies, which are expected to increase at a Compounded Annual Growth Rate (CAGR) of 12-15 per cent over the next five years.
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