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Risk aversion pushing investors to equity
Individual investors becoming more aware of the alternatives: BoB
Risk-Return Tradeoff
- MF investments rise from Rs0.64L cr in FY21 to Rs1.79L cr in FY23
- Financial savings of households were 8.4% in FY23
Chennai: With people becoming risk averse and aware of alternatives and willing to take risks, the migration to equity and index schemes is the pattern that would emerge, said Bank of Baroda (BoB) in a report.
According to the report, mutual funds have grown in stature and do compete with bank deposits.
“While one can see a direct correspondence between debt schemes and bank deposits where risk-return tradeoffs are different, the migration to equity and index schemes is a reflection of the individual investor becoming more aware of the alternatives and willingness to take risk. This could be the pattern going ahead,” the report said.
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