Karvy Private Wealth chief executive officer Abhijit Bhave said that both the financial assets and real estate would be the preferred choice of the millennials as they see investments in gold not as attractive as the other two in terms of returns.
Influenced by measures such as GST, RERA and Insolvency and Bankruptcy Code (IBC), more informal sectors would continue to come under the fold of formal economy along with increasing preference for financial assets over physical assets, the report says. "Going ahead, we expect this trend to continue over next five years with direct equity, mutual funds, fixed deposits, insurance and pension funds contributing a larger portion of overall asset pie," it said.
Total wealth held by individuals in India has grown by 11 percent to Rs 344 lakh crore in financial year 2017. Of this, individual wealth in financial assets grew by 14.63 percent to reach Rs 204 lakh crore, driven by direct equity, mutual funds, savings deposits and current account deposits. Individual wealth in physical assets stood at Rs 140 lakh crore, slowing down to 5.92 percent growth as compared to 10.32 percent in the previous year, according to the report.