PM Modi bets big on FDs: CA explains why most Indians make the same mistake with their wealth

In a recent post on X (formerly Twitter), Chartered Accountant Nitin Kaushik sparked a debate on investment habits after breaking down Prime Minister Narendra Modi’s declared assets and highlighting what he calls the “FD trap” most Indians fall into. 

As of March 31, 2025, PM Modi declared assets worth ₹3.43 crore. The bulk of it — ₹3.26 crore — is parked in a fixed deposit with the State Bank of India (SBI). The rest includes ₹9.74 lakh in National Savings Certificates and post office deposits, ₹3.1 lakh in gold rings, and no exposure to equities, mutual funds, bonds, or real estate. 

Kaushik noted that while a 6.5% fixed deposit rate looks safe, it barely matches India’s inflation levels of 6–7%. “In real terms, wealth growth is almost zero,” he wrote. By contrast, equities have historically delivered 12–15% CAGR over the long term. Had the same FD corpus been invested in equities, it could have potentially doubled or even tripled over a decade. 

“The PM’s choice reflects security over growth,” Kaushik said. “But if India’s citizens blindly follow this, wealth stagnates. Your money should work as hard as you do.” 

Kaushik explained that this mindset is common in Indian households: prioritizing safety over growth. While FDs feel risk-free, inflation silently erodes wealth. He urged individuals to consider a balanced portfolio — keeping a portion in FDs for security, but also diversifying into equities, mutual funds, REITs, or debt-equity mixes for long-term growth. 

His takeaway for savers was straightforward: don’t wait for perfect timing, and don’t park everything in FDs. Even small exposures to equity through SIPs or diversified funds can beat inflation and build wealth over time. 

“Safety is fine,” Kaushik concluded, “but letting part of your wealth earn aggressively is the real difference between stagnation and prosperity.”