From Physical to Financial Assets: How Indian Households are Shifting Savings into the Markets
A lot of Indian families are completely redefining the way to save money. While back in the day, people used to start purchasing gold or property with the extra cash or savings, the same is totally changed now.
According to a report on Times of India, monthly SIP contributions reached a record high of ₹ 26,688 crore in May 2025. Also, the total number of demat accounts in India went beyond 20 crore, as mentioned in The Economic Times.
Now, people are shifting their savings into financial products that are super easy to buy, easier to track, and quick to sell if required.
Gold Buying Is Now Mostly Festive, Not for Saving
Gone are the days when people were buying gold as a regular savings plan. Now, it’s mostly for the festive or wedding seasons for cultural significance.
For real savings, people are moving to digital gold or Sovereign Gold Bonds (SGBs). The major benefit of these is the flexibility to put in tiny amounts whenever you can. Additionally, there is no headache of gold being stolen or paying making charges.
Moreover, people even prefer SGBs for the ease of owning gold without investing a huge amount of money in heavy jewelry.
Property Is Losing Share Because Exits Take Too Long
Buying extra property or real estate was a safe move a little while ago. But now a lot of families are avoiding the property investment because selling it requires a lot of time and effort.
Even if you’re able to find a worthy buyer for the property, the lengthy process and paperwork burden make the process more tedious.
Since property construction is also a matter of years, families prefer to make an investment where money can be moved easily.
Demat Growth Shows First-Time Investors Entering Faster
With tons of people, even from smaller cities, moving towards demat accounts. It gives us a signal that even the people who had never invested in stocks are making the move now.
One major reason behind this increased preference towards a demat account is seamless account opening. These accounts are helpful in putting a small amount of money into stocks or ETFs (Exchange-Traded Funds).
SIP Registrations Show Consistent Monthly Participation
A new saving trend is the increased preference and demand for SIP (Systematic Investment Plans). The smaller investment in SIPs, such as 500 or 1000 rupees, gives people the flexibility to invest whenever they can have some extra income.
SIP is easier for normal people as they can take out money every single month. The sign of more people moving towards SIP shows the consistent way of saving money without waiting for a big pile of cash at the end of the year.
Young Earners Prefer Market Products Over Fixed Deposits
The modern way of saving from younger folks (usually in their 20s or 30s) is much different from how it used to be before. Gone are the days when the younger generation was investing in FDs (Fixed Deposits). Now, the major preference is towards liquid funds, index funds, or other financial products.
It is also easier to keep track of these money investments with complete transparency, with ease to take them out anytime.
Households Track Sectors and Businesses More Actively Now
Families are even paying more attention to the stock market, companies, and various business areas. Compared to earlier, they are proactively aware of new companies, their valuations, IPOs, new orders, and sector-wise information.
Along with the investors, even the general public is taking more interest in the economy and stock market before putting their precious money anywhere.
Safer Government-Linked Financial Products Are Acting as a Bridge
Even Government-backed products are now bringing helpful financial products, such as NPS (National Pension System), to help with long-term retirement savings.
On the other hand, SGBs are helping people to invest in gold without physical issues or huge investments. Similarly, RBI-linked bonds are much safer and a better choice of investment than physical items.
Families Discuss Taxes, Returns, and Market Cycles Regularly
In Indian households, the conversations around the dinner table have changed now. The families are comparing post-tax returns to keep a check on savings.
A lot of families are also understanding the stock market movement with long-term savings in phases. It helps them to figure out the modern ways to save money, such as SIPs, SGBs, NPS, etc., along with a clear roadmap to put money where it is needed.
Conclusion
Hence, the majority of Indian families are adopting the new way of saving money in 2025.
From saying goodbye to physical things and hello to financial products or investments, they are preferring to put money with flexibility, regulations, and easy growth.
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This analysis is for informational purposes only. Please consult a SEBI-registered financial advisor before investing.
– Chandan Pathak
Equity Research Analyst, StockYaari