Just came across this interesting Gallup study which shows that 55% of Americans have invested in stocks in some form. This cam be directly, mutual funds, ETFs, 401Ks, and other retirement accounts.
Comparitively, there are just 89 lakh active demat accounts in India and just 2 crore unique mutual fund investors.
Now where does the EPFO invest it’s money, in the markets right? if you take into account the 401k of USA then the EPFO’s should also be accounted for and how many salaried individuals of India have EPFO account… EPFO has around 170 million accounts out of which 50 million are active meaning they are directly/indirectly invested in the market without having a demat account… And in comparison there are only 1,68,000 so called 401K accounts in US as of the passing year.
5 crore active EPF subscribers. Only 15% of incremental corpus is invested in ETFs. EPF is basically debt. No matter, how you look at this, it’s a joke.
They seems very eager to buy some value papers from some some other countries which will give guaranteed income of yearly ten to fifteen percents which is crazy money for most americans who keep them in fixed deposits and some other stocks.