Indian households are sitting on an enormous Rs 950 lakh crore worth of wealth in gold and real estate, underlining a major challenge for policymakers trying to channel savings into financial markets. The insight was shared by Sashi Krishnan, Director at the National Institute of Securities Markets (NISM) during the Moneycontrol FiDEX 2026 (Financial Distribution Expo).
According to Krishnan, Indian households hold 30,000–35,000 tonnes of gold, valued at approximately Rs 450 lakh crore, while residential real estate assets are estimated at nearly Rs 500 lakh crore. A large portion of this wealth remains tied up in physical assets that often generate limited financial returns.
Despite India’s growing investment culture, only about 5.3% of household savings actually flows into financial products. The remaining savings are largely concentrated in gold, property, or idle assets, leaving a vast amount of capital outside the productive financial system.
India’s household savings rate stands at around 18% of GDP, yet most of these savings remain outside formal financial channels.
The country’s retail investing boom also reveals a significant participation gap. While Demat accounts have crossed 21 crore, only around 4.5 crore are active investors or traders. Similarly, mutual fund folios have reached 26.6 crore, but the number of unique investors is just about 6 crore, representing roughly 4% of India’s population.
Krishnan emphasized that even a modest shift in savings could transform the financial landscape.
“If just 10% more of the population reallocates savings from gold, real estate, or idle assets into financial markets, the growth potential for India’s capital markets would be enormous,” he said.
Encouraging households to move their savings into productive financial assets such as equities, mutual funds, and bonds could significantly deepen India’s capital markets and drive stronger long-term wealth creation and economic growth.
Frequently Asked Questions
How much wealth do Indian households hold in gold and real estate?
Indian households hold approximately Rs 950 lakh crore in gold and real estate combined. This includes around 30,000–35,000 tonnes of gold valued at about Rs 450 lakh crore and residential real estate worth nearly Rs 500 lakh crore.
Why is this considered a challenge for financial markets?
A large portion of household wealth is tied up in physical assets like gold and property, which typically generate limited financial returns. This reduces the flow of capital into financial markets such as stocks, bonds, and mutual funds, slowing capital market growth.
What percentage of household savings goes into financial products?
Only about 5.3% of household savings in India flows into financial products, while the majority remains invested in physical assets or idle savings.
How could financial markets benefit if more people invest?
If even 10% more of India’s population shifts savings from gold, real estate, or idle assets into financial markets, it could significantly boost capital market growth, liquidity, and long-term wealth creation.
