India’s Rs 950 lakh cr worth holdings in gold, real estate shows challenge of shifting savings to markets: NISM Director

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Indian households hold about Rs 950 lakh crore in gold and real estate, highlighting the challenge of shifting savings into financial markets despite the country’s growing retail investing base, Sashi Krishnan, Director at the National Institute of Securities Markets (NISM), said at Moneycontrol FiDEX 2026 (Financial Distribution Expo).

Households collectively hold 30,000–35,000 tonnes of gold valued at about Rs 450 lakh crore, while residential real estate assets are estimated at around Rs 500 lakh crore, he said. Much of this wealth remains locked in physical assets that generate limited financial returns.

“Just about 5.3% of household savings actually flows into financial products. The rest — nearly Rs 950 lakh crore — is largely sitting in gold and real estate and remains unproductive capital,” Krishnan said.

India’s household savings rate stands at about 18% of GDP, but most of those savings remain outside the formal financial system, he said.

The retail investing boom also masks a large participation gap. Demat accounts have crossed about 21 crore, but only around 4.5 crore accounts are active traders or investors, Krishnan said.

Similarly, mutual fund folios have reached about 26.6 crore, while the number of unique investors stands at about 6 crore — roughly 4% of India’s population.

“If even an additional 10% of the population shifts savings from gold, real estate or idle assets into financial markets, the growth opportunity for capital markets would be enormous,” he said.

Krishnan said encouraging households to move savings into productive financial assets will be key to deepening India’s capital markets and improving long-term wealth creation.