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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