Household Mutual Funds Savings Down 40% ..!


Indians Savings in deposits & small savings of individuals increased in the 2013-14, while saw a drop in mutual funds and currency.

As per the Annual Report of the Reserve Bank of India (RBI), savings in deposits by the household sector increased by Rs. 1 lakh crore in a year to Rs. 6.91 lakh crore in 2013 -14 as against Rs. 5.91 lakh crore in 2012 -13.

The saving deposits are nearly 59% to the gross financial savings, of which nearly 53% constitute deposits with commercial banks.

Net financial savings of household sector grew 13% to Rs. 8.19 lakh crore as against Rs. 7.22 lakh crore in the previous year.

This is for the first time that the RBI released data on the financial saving of the household sector.

Saving by individuals in Mutual Funds (through shares & debentures) saw a 40% drop to Rs. 21,000 crore in 2013 -14 as compared with Rs. 35,000 crore a year ago.

While savings in currency declined by 9% to Rs.1.02 lakh crore from Rs. 1.12 lakh crore.

Net financial savings of household sector grew 13% to Rs. 8.19 lakh crore as against Rs. 7.22 lakh crore in the previous year.

The gross domestic saving rate as per Centrsal Statistics Office’s estimates declined to 30.1% in 2012-13 from 31.3% in 2011-12 mainly on account of a decline in the rate of household physical savings.

The saving rate dipped to its lowest in the past nine years & the household saving rate has hovered about 23% since 2003-04.


After a one-off sharp increase to 25.25% in 2009-10, it declined to 21.9% in 2012-13 due to drop in financial savings by individuals.
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