So, what makes more money? Stocks? Or mutual funds? Given an esteemed panel split right down the middle on that question, Mukesh Kalra, Founder, ETMoney, Nithin Kamath, Founder, Zerodha, Rajat Agarwal, Vice President, Matrix Partners, Vasanth Kamath, Founder, SmallCase, Srinivas Jain, Executive Director, SBI Mutual Fund, chose wisely to focus other interesting insights that were easier to agree on.
Less than 3% of Indians invest in stocks and bonds. Yes, so how can we change that?
The penetration of investment products is low in India. The elephant in the room addressed right in the beginning, the panel focused on what could drive a change towards higher investment, and specially towards digital methods of investment.
The leapfrog moment:
Higher savings rate, dip in gold, real estate and Fixed Deposit interest rates could be the growth spurt the industry needs now. That said, they felt that mutual funds do have flexibility to solve for multiple financial needs. The key question remains – can digital and app-based investment methods reach a wider section of India beyond the 3% who are already aware and invested in the idea and the actual products?
What the industry really needs:
Simplifying finance for consumers is a key ask. Spending time on Financial Education and on creating trust with the customers is a key need. And margin of trust with a startup managing your savings is low. Companies hence have to focus on building a strong product and brand and have equally strong partners for scale.
For more insights on the growth of the Investment market, read our take on the market here. (we can attach the Investment article I had shared).