Financial savings pip physical assets in 2014-15: Karvy Private Wealth

Financial and physical savings instruments in India saw a reversal in fortunes in 2014-15, as the former cornered a larger share of individual investments during the year.

Traditionally, Indians prefer to invest in assets with touch-and-feel factor like property and gold. In 2014-15, financial savings accounted for over 57 per cent of total assets in India, with physical assets making up the balance, the latest edition of India Wealth Report released by Karvy Private Wealth has said.

Total individual wealth in financial assets increased from Rs 134.7 lakh crore in 2013-14 to Rs 160.5 lakh crore in 2014-15, a growth of 19 per cent. "This suggests a new growing India, where apart from economic growth, people see value in investing their hard earned money in more liquid and return oriented assets," the report noted.

Within the financial savings category, direct equity, which saw a growth of nearly 30 per cent over last year, led the pack, cornering a 21.4 per cent share. It was closely followed by fixed deposits and bonds (20.7 per cent) that rose 13 per cent during the period. Investments in insurance (14.7 per cent) claimed the third spot, while more liquid savings deposits (12.4 per cent) and cash (9 per cent) secured the fourth and fifth slots respectively.