InvestorQ : Is it true that Indian investors have one of the lowest exposures to the equity markets?
diksha shah made post

Is it true that Indian investors have one of the lowest exposures to the equity markets?

Answer
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3 weeks ago


That has been pointed out by a recent report authored by the brokerage house, Motilal Oswal Securities. The report has pointed out that Indian households have the lowest exposure to the equity segment which is as low as 14%.

In contrast, US households had an exposure of 46% to equities and that is the highest in the world. Other countries like Spain, Canada and China were also fast catching up on the equity exposure trend. Of course, the US still leads in terms of spread of equity cult.

To put things in context, household financial assets in the US stand at $94 trillion and 46% of that amount is in equities. Interestingly, this share used to be just 33% in 2008 and the last 12 year have seen a huge spike in share of equity due to the bull market.

In comparison, India is also seeing a sharp spike in the number of demat accounts, the number of SIPs and also in the exposure to mutual fund equity assets. However, in absolute terms that is still very small.