The news as a pleasant surprise. The union territory of Ladakh has emerged as the region with the highest density of active users in Indian equity markets. It has the highest percentage of active DMAT accounts per one lakh persons in the whole country. A cul de sac places like Ladakh having such high levels of financial literacy means that a lot of hardwork has gone into making people of the region literate financially. This goes to show that when it comes to financial literacy distance and geography can be such irrelevant terms.
In India people of Gujrat, Maharashtra and Karnataka are among the most financially literate schools. Wealth creation in these states is a forte of everyone even the blue-collar workforce. In one of the videos daughter-in-laws of a few households in Rajasthan are squatted in a courtyard discussing various market trend analysis. These women probably have never been to college and never have done any MBA or MFC but they are financially literate from experience.
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The valley of Kashmir is still known as a place with some of the lowest per capita income in the country. Horticulture and to a large extent tourism is the mainstay of our economy. The union territory of Jammu and Kashmir has one of the lowest Gross Domestic Product metrics and equally lower per capita income. For an agrarian economy like ours saving money for later investment in equity market and wealth creation is equally important.
People mainly prefer to keep their money in savings bank account and fixed bank accounts. But the lower interest rates ensure that money is doubled in 8 to 12 years. Till that time the rising inflation makes the valuation of this money very low. Investment in equity market is one of the fastest ways of wealth creation. People who invested in equity market in 90s and held on to the shares are among the richest elites of Kashmiri society today.
Financial literacy is the key for a prosperous economy. Ladakh has learnt it really well and we hope Kashmir has becomes one of the densest equity market share holding place very soon.
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