People prefered Mutual Funds Compared to Gold,real estate,shares

The Decision of demonetisation has started showing its effects in past 1 year as more people turned to invest in financial saving instruments such as Mutual funds, Shares compared to physical assets such as Gold, silver and Real Estate.

Bank deposits not attractive

Many people have not shown interest in bank deposits as the interest rates have gone down because of the huge inflow of cash into banks.

Gold surveillance increased

The Government in its efforts to reduce black money has tightened rules for gold purchase and mandated Pan for gold purchase above RS 2 lakh and banned cash transactions above 2 lakh and increased surveillance and spread of rumors on the cap of gold has made the customers to divert the money.

Real Estate- price drop a low for Investor

The people have shown interest in some areas to invest but the prices have taken a correction so huge investors didn't prefer this sector and the government hint on the crackdown of Benami properties had worried the investors.

Share Markets

Currently, many people don't invest in Shares although the shares of banks and digital wallet companies surged but common man felt these are high risky investments.

Mutual Funds- Equity funds

Many advisors have advised the people to invest in Equity Mutual funds so that these would be attractive and have a high rate of return.

Investments in Equity funds and Systematic Investment Plan (SIP) funds have increased as people thought it would be safe and less risky.

Sources say that approximately Rs 6000 crore flowed into mutual funds every month after demonetisation.