'Trust deficit driving people away from risky investments'
Mumbai: Union Minister Smriti Irani Friday said lack of trust in financial assets makes people invest in avenues like gold and realty.
In the comments, a candid Irani also seemed to admit that she prefers physical assets and the simpler fixed deposits over other financial sector bets.
"Most Indians are inclined to savings through investment in-house or keeping their money in fixed deposits or buying jewellery. Even I am of that bracket of the population which thinks such," she said.
The minister for textiles said Indians still believe that in case of emergency, they can either sell their jewellery or break the fixed deposits.
"Biggest challenges that I see today is the challenge of trust," she added, speaking at an event organised by the Financial of Independent Financial Advisors (FIFA) here.
Irani said we "fear" about money and are not "bold" with it.
"We are told that money is few and precious and it has to be saved to outlive us and to be kept for our family members," she rued.
It can be noted that for the last many years, policymakers have been stressing on the need for a shift to savings in financial products like mutual funds or even dematerialised gold.
They also come amid a slew of instances where governance issues like the crisis at the infra lender IL&FS have dented people's confidence in the financial sector or massive movement in stock prices of select companies in the liquidity crisis that ensued after the