This convergence forms the essential recipe for an economy poised to catapult into unprecedented growth and prosperity. Of these four, equity and FDs (as a proxy for fixed income) have been the financial market’s investment options. Historically, fixed deposits (FDs) have long been the go-to option for risk-averse investors seeking stability. For instance, as of March 2023, term deposits in India totalled $1.35 trillion, with individuals and Hindu Undivided Families (HUFs) accounting for 47.35% of the total, according to RBI data However, despite the vast sums parked in fixed deposits, retail participation in other fixed instruments remains relatively low. As of January 31, 2024, out of 3,50,60,904 active clients registered as per NSDL , only 2.19% had accounts involving debt instruments.

Source: Economic Times March 02, 2024 08:26 UTC