Indian retail investors : 63% are interested in goal based products..!

Indian retail investors : 63% are interested in goal based products..!

While 22% retail investors invest their money for their sunset days, 20% invest to buy a house or car.

Retirement and investing for a large purchase, such as house or car, are the top priorities for Indian retail investors, shows a survey conducted by CFA Institute. (2018 April) 

The survey covered 3,127 retail investors and 829 institutional investors worldwide, including 100 retail investors and 84 institutional investors from India.

Buying a house..!

While 22% retail investors invest their money to save for their retirement, 20% invest to make large purchase such as buying a house or car.

Similarly, 16% of retail investors want to save to pursue their entrepreneurial dreams.

However, retail investors in India lag behind the global average of 56%. Almost six out of ten people in most of the developed nations save for their retirement.

“Retail investors in more developed markets are focused on reaching retirement, while in other markets, investors are investing to consume or to maintain financial security. It is important that the advisor defines investment success in the same way the client does,” the report said.

“Retail investor fears are also related to their goals; thus, many have concerns about retirement-related issues, either a financial crisis that reduces the value of their retirement portfolio, or living past their wealth,” the survey report added.

Indian Retail investors’ goals

Goals	%
Retirement	22%
Large purchase - buying a house or car	20%
Saving for business	16%
Estate planning	14%
Education savings	12%
Emergency fund	10%

The report recommended advisors to focus on personalised goals to grow business.

“By understanding client goals better, advisory firms have an opportunity to provide increased customisation and personalisation of products and services. This is in demand: the majority of retail investors responded they are interested in more personalised products and of these, a majority would be willing to pay more for them. This is consistent with the parallel worlds scenario of future state of the investment profession, in which investment firms can provide greater value through customisation,” the report adds.

The report says that while 63% of retail investors are interested in goal based products, they are willing to pay more for such products.

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