The concept is as old as the human beings are. Indians are well known across the world as good savers. The economy of a country depends on its capital formation. Household savings and investments have a significant share in capital formation. The concept of savings and investment is changing with time. From savings deposited in Bank or Post offices as fixed deposits or risk free schemes of the government, people are slowly moving towards investments in mutual funds, equities etc. A major boost in investments in equities and mutual funds came after 1990 (post liberalization). Now, with demonetization, people have again shown interest in deposits in banks and investing in mutual funds. This paper tries to look into various modes of savings and investments adopted by Indian households over the years and the changing trends that emerging these days. It also takes in to account the impact of government policies, initiatives taken up by SEBI and the effects of demonetization.
Objectives
Objectives of this paper are to study –
· The pattern of savings by Indian households
· Different ways of investments followed by Indian households
· Roles of different financial institutions as investment bodies
· The changes that are taking place in savings and investments in Indian households with time. Methodology The information gathered for this paper is based on the secondary data collected from various books, articles, reports, and news available in different newspapers, magazines, journals and websites.
