The composition of total savings in India has been changing during the last few years, the biggest rise being in mutual funds and equity schemes. The average Indian household now prefers the more rewarding equity market over the stagnating real estate market or durable goods that used to signify wealth. While this new development can fuel economic growth, it is risky because a collapse in the stock market would lead to households losing a larger proportion of their savings and lower future savings.

a. How is the purchase of durable goods mentioned in the news clip different from the purchase of equity? Explain your answer.

b. Why are households in India moving toward investing in equity instead of real estate or durable goods, and how is it riskier?