|
The transaction
sizes in the debt market are very large and most individual investors
are not able to participate in it directly. Typically retail investors
invest money with primary savings institutions through various
schemes/instruments. Typical examples of primary savings mobilizers are
banks, insurance companies, mutual funds, provident funds etc. In turn,
these institutions invest the funds mobilized from millions of
individuals in the wholesale debt market and other investment avenues.
In this section, we discuss the various avenues of investment available
to retail investors in instruments/schemes which provide the investor
with fixed annual returns in the form of interest.
The following table shows the investment behavior of Indian households
as a whole and gives some idea of investment preferences for the entire
mass of Indian investors.
Household savings and investment trends (% GDP)
| % of GDP |
1993-94 |
1994-95 |
1995-96 |
1996-97 |
1997-98 |
| Currency |
1.6 |
1.7 |
1.5 |
1.1 |
0.9 |
| Bank deposits |
4.5 |
5.8 |
3.6 |
4.5 |
5.8 |
| Non bank deposits
|
1.4 |
1.2 |
1.2 |
1.7 |
0.5 |
| Life Insurance |
1.2 |
1.2 |
1.2 |
1.3 |
1.4 |
| Provident/ pension
|
2.2 |
2.2 |
2.0 |
2.1 |
2.3 |
| Small savings |
0.9 |
1.4 |
0.9 |
0.9 |
1.6 |
| Shares & debentures
|
1.2 |
1.4 |
0.8 |
0.5 |
0.2 |
| UTI units |
0.6 |
0.4 |
- |
0.3 |
- |
| Trade debt |
(0.1) |
(0.1) |
- |
- |
- |
| Total % GDP |
13.5 |
15.2 |
11.2 |
12.4 |
12.7 |
|
