Are Investors Losing Interest in Deposits? A Financial Advisor Explains

The Reserve Bank of India (RBI) governor, Shaktikanta Das, has expressed concern about deposit growth, highlighting a trend of investors favoring equity investments over traditional deposits. This shift, driven by a desire for potentially higher returns and the allure of financial markets, is causing a decline in deposit base. A growing number of investors, particularly young individuals, are turning towards mutual funds and equities, seeking to capitalize on the potential for capital appreciation. Financial advisors like Sujan Das emphasize that investors are increasingly aware of the risks associated with investments and are becoming more proactive in managing their risk profiles. They are actively seeking professional advice and exploring alternative financial products like Systematic Investment Plans (SIPs) to achieve their financial goals. This shift towards long-term investing strategies reflects a growing financial discipline and a desire to secure financial stability.