Where Indians Are Investing Their Money? Data Shows Most Savings Go to Deposits

A recent data graphic from IND Money highlights where Indians are investing their savings, and it shows that most money is still going into safe and traditional instruments, not the stock market.

According to the data, 35% of total household savings are kept in bank and non-bank deposits. This amounts to around ₹12.5 lakh crore, making it the biggest investment choice for Indians.

Provident and pension funds account for 22% of total investments, with an estimated value of ₹7.9 lakh crore. These long-term savings options remain popular among salaried individuals.

Life insurance funds make up 15% of investments, totaling about ₹5.3 lakh crore. Insurance continues to be used both for protection and savings.

Mutual funds account for 13%, with investments of around ₹4.7 lakh crore. This shows a gradual rise in market-linked investments, though the share is still much lower than traditional options.

Only 2% of total savings are invested in equity (stocks), amounting to just ₹0.7 lakh crore. This means only ₹2 out of every ₹100 saved by Indians goes into stocks, highlighting low direct participation in the stock market.

Small savings schemes, such as post office deposits, account for 7% or about ₹2.3 lakh crore.

Cash holdings (currency) make up 6%, estimated at ₹2.1 lakh crore, indicating that a significant amount of money is still held as physical cash.

The data is based on RBI Non-Bank Deposits, deposits with NBFCs, and other instruments. It reflects net flows into each investment option during the year.

The graphic also notes that the figures are estimates and meant for general and educational purposes only, not as investment advice. Investment in securities remains subject to market risks.

Overall, the data clearly shows that Indian households continue to prefer safe and guaranteed returns, while equity investments remain a very small part of total savings.