As economic development progresses in India, will there be a shift towards financial assets?
The shift from real assets to physical is likely to happen. Demonetisation, the new regulations in the real estate sector and the introduction of GST will drive this shift.
Suddenly people in India, like in advance countries have started believing in financial planning process before any investments. The domestic investors who relied on fixed return and safe investment products are also witnessing a transition towards long term equity oriented products through mutual funds and NPS route
The volatility in financial assets and more digitalisation will give a further boost to acquire the financial asset class. However, for a larger boost, individual mindset and traditional biases need to get altered. The new generation Indians who are more educated, practical, and global in thought, corresponds to lower investments in gold & property and gets into new ways of creating wealth and putting their money more into financial assets compare to physical assets.