WHY FINANCIAL LITERACY IS FALLING SHORT

THERE is no shortage of experts in the world of financial literacy.

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They furiously make online videos, organise social media events and live investment workshops, and publish content. Despite all that effort, the number of people putting their life savings into financial assets is too small compared to the money that finds its way into property and gold. Considering India's population, less than 4% choose mutual funds or equity-linked assets. Among major global economies, India has the lowest household exposure to equities at 4.7%. The number is three times more for Europe and four times for the US.

Analysts turn the low penetration of financial assets in Indian households as an opportunity. They believe the 'financialisation of savings' could lead to a steady money flow into equity markets. While the English-speaking, primarily urban population has a relatively high tendency to save and invest across financial assets, a vast population has yet to transition from tangible assets.