Aug 12 2017, 4:04 PMAug 12 2017, 4:17 PMAugust 12 2017, 4:04 PMAugust 12 2017, 4:17 PM
Mutual funds and life insurance policies have been the unexpected beneficiaries of India's crackdown on cash transactions last year, the nation's central bank has said. Following a study after demonetisation in the period November to June 2017, the Reserve Bank of India said there has been a "distinct increase" in funds flowing into investment vehicles. A reduction in bank deposit rates after the move, along with a fall in the price of gold, “enhanced the relative attractiveness of both debt and equity-oriented mutual funds”. Premiums paid to life insurers increased by 46% in Novemberthe period November to June 2017 to June 2017 over the same period 12 months before.