The combination of rising financialisation, expanding equity ownership and stronger corporate profitability is creating a multi-trillion-dollar opportunity for investors, Motilal Oswal Financial Services in its Annual Wealth Creation Study (2020-2025) said.
At lower income levels, households tend to favour physical assets, viewing them as safer stores of value. As incomes grow and financial systems mature, there is a gradual diversification into financial assets, which generally offer greater liquidity and, in some cases, higher returns.