I have 2 crores in fixed deposits, 70 lacs of 2 bhk, an apartment fully paid and 30 lacs in retirement schemes like PF. Am I considered middle class or upper middle class in India?

Congratulations! but read on to know why! Evaluating the social and economic tiers in India can be complex, given the vast diversity and regional variations. But let’s analyze your financial standing against the broad backdrop of the Indian middle-class spectrum.

1. Total Net Worth: Your combined assets (Rs 2 crores in FDs, Rs 70 lacs property, and Rs 30 lacs in retirement schemes) amounts to approximately Rs 3 crores. This sum, by any Indian city’s standards, is a sizable amount.
2. Real Estate: Owning a fully-paid 2 BHK apartment puts you in a privileged position. Many Indian families aspire to own a house, and a significant portion of their income might be dedicated to home loan EMIs. Being free from this liability is an indicator of strong financial health.
3. Liquid Assets: Rs 2 crores in fixed deposits ensures that you have liquidity at hand. This provides you with a safety net, potential income from interest, and flexibility to venture into other investment avenues if you wish.
4. Retirement Planning: Rs 30 lacs in retirement schemes like PF suggests foresight and discipline in terms of long-term financial planning.

So, where does this place you in the Indian socio-economic structure?

If we look purely at the numbers and assets, you would be leaning more towards the upper-middle-class, if not the affluent class, especially in tier-1 and tier-2 cities. Your net worth is considerably higher than what many middle-class families in urban areas might have. The fact that a significant portion of your wealth is liquid and not tied up suggests a comfortable financial cushion.

However, classifications like ‘middle class’ and ‘upper middle class’ aren’t just about financial metrics. They encompass lifestyle, education, social circles, and consumption patterns. While assets and liquidity are critical determinants, the way one utilizes these resources also plays a role.

To sum up, in the vast tapestry of India’s socio-economic landscape, your assets and investments position you comfortably in the upper-middle-class segment, if not higher. But remember, true wealth isn’t just about numbers. It’s about the quality of life, peace of mind, and the difference you make. As the astute investor, Rakesh Jhunjhunwala, once said, “The depth of your struggle will determine the height of your success.” Your financial discipline seems to be reaping its rewards.

Should you seek to optimize these assets and grow them further, or even understand more about where you stand, consider connecting with a SEBI Registered Investment advisor. Jama Wealth’s portfolio management services and associated investment advisory services can provide guidance tailored to your specific needs.