India's ₹100 Savings: ₹33 in Banks, ₹39 in Pension and Markets — SkimNews
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- Bank deposits fell from 52% of Indian household financial savings in FY71-80 to 33% in FY25, according to Franklin Templeton India Mutual Fund's "Financialization of Savings in India" report.
- Mutual funds, shares and debentures rose from 0% in FY71-80 to 18% in FY25, overtaking life insurance (17%) that year after climbing from 11% in FY24.
- Provident and pension funds held a relatively stable share, rising from 19% in FY71-80 to 21% in FY25, contributing to the ₹39-of-every-₹100 going to retirement- and market-linked products.
- Managed investments grew at a ~17.5% CAGR between March 2020 and March 2025, compared with 11.7% for bank deposits, narrowing the gap between the two categories from ~₹32 lakh crore to ₹7 lakh crore.
- Indian household wealth remained heavily in physical assets at 68% in FY25, including 10-12% in gold and 57-60% in real estate, a share the report projects could moderate to 58-64%.
- India's equity share of household assets stood at 7% as of June 2026, versus 26% in the US and 17% in Taiwan, while mutual fund AUM more than doubled from ₹35.32 lakh crore in July 2021 to ₹85.76 lakh crore in July 2026 (~19% CAGR).
- Digital public infrastructure — the JAM trinity (Jan Dhan, Aadhaar, Mobile), Aadhaar-enabled e-KYC, UPI, and the Account Aggregator framework — has cut discovery, onboarding and servicing costs, extending formal investing beyond metros, the report said.
Why it matters: Indian households still keep 68% of wealth in physical assets and an equity share of just 7% (vs 26% in the US), so the rebalancing away from deposits has substantial runway. With 65% of the population under 35 and digital rails lowering onboarding costs to near-zero, asset managers, insurers and wealth platforms gain a multi-decade tailwind as the gap between managed investments and bank deposits continues to narrow.
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