Equities on the Rise: Indian Households Embrace SIPs Amid Traditional Preferences

Indian households, traditionally invested in property and gold, are gradually diversifying into equities through Systematic Investment Plans (SIPs). A Jefferies report reveals equities now form 5.8% of assets, while traditional investments dominate. Yet, SIP inflows reached a record high, reflecting growing financial awareness and commitment to equity investments.

Indian households have shown a growing interest in equity investments, although they still heavily lean towards traditional assets like property and gold. According to a report by Jefferies, equities account for just 5.8% of the total assets of an average Indian household.

The data reflects a strong preference for traditional investment choices, with property taking the lead at 51.3% of household assets. Gold follows at 15.2%, and bank deposits comprise 13.3%. Provident funds and pension schemes make up 5.7%, while cash holdings are at 3%.

Despite the modest share of equities, retail investments in the stock market have seen a noticeable increase through Systematic Investment Plans (SIPs). These allow individuals to invest fixed sums regularly, promoting disciplined saving. In October 2024, SIP inflows hit a record Rs 253.2 billion, a 49.6% increase from the previous year, illustrating a shift towards equity investment amid rising financial literacy.

(With inputs from agencies.)