Short-term valuation headwinds? Yes. Long-term growth potential intact? Yes. Which ‘Yes’ is more relevant?

What is “financialization of savings”? Well, it is the trend of shifting savings from traditional, physical assets like real estate or gold to financial assets like stocks, mutual funds, or bonds. It is a trend that is only catching on in India, compared to developed economies where it is the norm. How do we say it is a growing trend? Because there is clear historical evidence of this. And there is no doubt that, on an absolute basis, the total number of investors trading in the Indian markets will be higher two years from now. Also, given the corrections and volatility we have seen of late, this participation may well take the safer MF route.