A few Insights about Household Savings and Investments

Published with permission from

Fintwit Sadhguru

@passivefool

CAMS filed it’s DRHP and there’s a lot of industry insight.

1. Household saving: Financial savings haven’t grown.

This has to change dramatically for the marketing about “Invest in the India growth story” to come true

2. Indian gross domestic savings rate.

3. Mutual Funds as a % of total financial household assets. Not bad, some growth. But more, A LOT MORE, has to be done. Remember just 2 crore uniue MF investors in India.

4. Growth of the Indian mutual fund industry. If markets remain in the current funk, the growth will fall. But this is how it is.

5. MF AUM as a % of GDP

6. India’s AUM as % of GDP vs other developed and developing peers.

7. Breakdown of debt and equity as a % of GDP.

8. Categorywise growth of MF AUM.

9. Categorywise flows.

10. Investor makeup of the Indian MF AUM. This is bad, that retail number has to increase dramatically. Remember, just 2 crore unique MF investors in India.

11. AUM split of Individual investors. Yes! Equity heavy

12. AUM split of Institutional investors. As expected debt heavy!

13. For all the talk about Upar Ki Kamai, direct plans just make up 17% of the total AUM and they are dominated by rich people.

14. What constitues expense ratios?

15. SIP flows vs Nifty. The biggest free lunch the MF industry has seen – SIP flows. Free and mostly sticky money. They’ll have to work hard to keep it sticky. Starts with not coming up with retarded scheme names, better MF websites, ACTUAL INVESTOR EDUCATION & more,