TIME TO GAIN

WHY FINANCIAL PLANNING IS IMPORTANT, AND PATIENCE EVEN MORE SO

- BY NACHIKET KELKAR

In the past decade, especially post-pandemic, the number of Indians investing has risen considerably. In October, 30 lakh new demat accounts were opened, with the total hitting a record 21 crore. Many more are investing in mutual funds, with more than ₹29,000 crore coming into the equity market via systematic investment plans (SIP) alone. Many are buying gold, picking up bonds and also exploring alternative assets.

Sachin Jain, managing partner at Scripbox, notes that investors have sensed the need to diversify beyond traditional instruments like fixed deposits.

"Markets have expanded as awareness has improved, which has been aided by digitisation and the introduction of new players that have brought the product distribution to a new level," he says.

Yet, data suggests that many Indians aren't doing enough. The Indian Wealth Survey published earlier this year by Marcellus Investment Managers in collaboration with Dun and Bradstreet showed 43 per cent of HNI respondents were saving less than 20 per cent of their post-tax income. Only a third had more than 20 per cent equity allocation and 14 per cent didn't maintain any emergency funds.