DSP BlackRock on Wednesday came out with its first ‘India Investor Pulse Survey’ for 2014 which provides insights into the financial behaviour of Indian investors as compared to Asian and other global investors.
The key takeaway from the report was that majority of Indian investors believe the domestic economy is getting better and they will continue to increase their exposure in equities over the next 12 months.
The report is based on a survey of 1,500 Indians in the 25–74 year old category. Those surveyed were primarily urban and financially aware and included a combination of retail and high networth respondents. The top perceived risks included cost-centred issues like high cost of living, inflation, healthcare cost and energy prices.
“The results thrown up bu the Indian Investor Pulse Survey on investor preferences, retirement planning and increased interest in seeking advice from financial advisors are encouraging. Investor optimism is clearly reflected in the significant increase in flows into domestic equity mutual funds over the past six months,” according to S Naganath, president & chief investment officer, DSP BlackRock Investment Managers.
Along with India, DSP BlackRock has conducted similar survey for 20 markets across the globe in conjunction with Cicero Group, a leading independent research agency. The report suggests when it comes to saving Indians and other Asian investors save 27% of their monthly take-home pay as compared to respondents in Europe who only save 15%.
India investors remain more biased towards life insurance and fixed deposits because they are generally seen as safer options compared to other financial assets. “Guaranteed returns, better knowledge and easy to understand solutions are more likely to encourage Indians to invest more of their cash saving into other investments. There is significant home market bias as only 8% of Indians are investing outside India,” stated the report.
But with improved market condition and awareness, over half Indian investors are more interested in investing in equities now than they were five years ago. As Indians are seeking more financial advise for their investments, they also remain very positive about their financial future and are confident in making savings and investment decisions.