Indians keen on widening exposure to stocks, MFs: Survey

Almost half of the respondents of a survey said they would like to increase their exposure to stocks and equity mutual funds over the next 12 months. According to the DSP BlackRock India Investor Pulse Survey, whose findings were released here today, investors in the country appreciate the growth potential and value creation from equities, including mutual funds. However, they still like the perceived assurance from traditional asset classes.

Better knowledge about investing would encourage more than two-fifths of investors to move more of their cash into investments, it said. Despite global economic uncertainties, financial sentiment among Indians is the most positive of all markets surveyed, and savings and investment decision-making confidence is very high, it said. "India's relatively stronger positioning among global markets is reflected in the upbeat investor sentiment shown in the survey," DSP BlackRock Investment Managers President and Chief Investment Officer S Naganath said.

BlackRock conducted the survey of 31,139 people across 20 markets, in conjunction with Cicero Group, a research agency. India has been included in the survey since 2014. The survey in the country was conducted online among 1,500 respondents aged 25-74, who had a role in financial decision making.

The survey found that Indian respondents were looking to reduce their exposure to idle cash and invest their money in other asset classes, whereas physical assets such as property and gold are still popular. Retirement, children's education and buying a home are the top three investment goals for Indians. Around 61 per cent of household financial decision-making is made independently by a single member of the family.

When household financial decision-making responsibilities are shared, nearly 80 per cent of the time it is shared with the spouse, the report said. Of those who do share financial decision making, only 31 per cent of women respondents are likely to make the final decision compared to 60 percent of men. Around 60 per cent of male respondents feel that their spouse knows as much or more than them when it comes to their investments, while the corresponding figure for women respondents is over 90 percent.