And finance is no different. For centuries, Indians have been investing in gold and land to secure their future. The banking system in our country has been in operation since the late 1800s. get loan from Sahukars And putting out the family’s long-held property as mortgage was some lending system that was the only thing people knew about the asset class. It was a major asset class until then. Indiaof independence.
With better economic development, government-run policies and promotion of education, Indians were exposed to many financial instruments of the then modern times. After independence people came to know about it banks And why depositing money in banks was a better option than keeping all the property in their homes. The post office used to be another home for the people, the postman was no less than one’s relative. And so people also came to know about the post office Savings Schemes offered by India Post. There are nine India Post Savings Schemes running even today. The National Savings Institute also worked closely with India Post and popularized the savings schemes. Retirement plans were welcomed with open arms by the citizens, mutual funds was understood and PF was taken into account while discussing salary.
But are they still relevant today? Is this the same India as it was in the 1960s? Have we not progressed in the field of technology and education? Yes absolutely. we have. Internet access, even in the remotest villages of our country, has changed the way we view our finances and asset class.
The asset class we depended on fifty or forty years ago was based on the country’s economic condition, education, knowledge about the asset class and most importantly risk taking ability.
The average Indian then struggled to afford a decent lifestyle for a family of five or six or seven. There was only one member who would be the bread earner. The financial decision maker was left with no option but to choose an asset class that could guarantee a certain return with minimal or no risk. People can get these facilities in banks, interest earned through bank deposits, FD, Recurring Deposits, Life Insurance Plans, KVP, NSC and other similar asset classes. Since people believed in gold, they believed in currency issued by the government. And which eventually developed their confidence in the schemes being run by banks and other centralized institutions.
Fast forward today when an average Indian is earning enough money to give a above average lifestyle to his family members. Joint families are reduced to nuclear families with three or four members. There is more than one family member who is earning, and where education and information is available. Financial advisors can be hired, who can make better decisions for you and your savings.
Most of the Indians have now developed a good risk taking ability. They are beyond fear of losing all their money. This is because they are smart enough not to put all their money at stake. At the same time, they are intelligent enough to understand that whatever they decide to invest in, they are not putting it into one asset class.
Those asset classes that assure good but sure returns are not completely spared. Each asset class has its own benefits to provide to one or the other section of the Indian society. But new asset classes like Cryptocurrency, Digital Gold, Virtual Currency have gained huge acceptance in the short term.
Even though we don’t see an immediate death to any asset class, the front line could be investments through post offices. On the other hand, we certainly see a giant leap in the dominance of new age currency in the investment strategy of Indians in the coming years.
The author is Co-Founder and CEO, Unocoin Technologies Pvt Ltd. views expressed are personal