Outlook 2024: 12 key reasons why the new year could be the year of savers and investors

livemint.com:

As per the Reserve Bank of India (RBI) data, net financial savings of households fell to a nearly five-decade low of 5.1% of GDP in FY23, down from 7.2% in FY22. For India, which has been known as a country with good savings habit, this news is worrisome.

Calendar year 2023 has seen some record numbers in car sales which have crossed 4 million units for the first time in history. iPhone sales also hit never-before-seen numbers in India in the year. While we have made record spends on luxury in the year, we cannot afford ditching savings for a secured future.

We will have to come out of this concerning situation on savings quickly and what better than a New Year to take a resolution to save and invest more to correct this. To support savings and investments, 2024 has great green shoots which are shared here for the readers to consume and capitalise.

· As proposed by IRDAI (Insurance Regulatory and Development Authority), non-participating policies would have higher surrender value from this year which is good news for investors who wish to surrender their policies and will have higher money in hand to invest.

· CY 2024 is expected to see interest rates correcting which is music to the ears for existing home loan customers and for those who wish to buy a home. For existing home loan customers low interest rates means increase in savings to increase their investments.

· SEBI has planned to introduce same day settlement for shares by March 2024 which would lead to faster liquidation of shares and equity mutual funds, taking them close to the most favoured investment options like fixed deposits, in terms of liquidity.

· Debt fund investors are poised for better returns with interest rates being poised to soften from this