SEBI - INVESTOR SURVEY

-
By Mrs.S.Johnsi
"How many millionaires do you know who have become wealthy by investing in savings accounts? I rest my case."
- Robert G. Allen

Indian households’ preferred financial assets are bank deposits, life insurance, precious metals, post-office savings and real estate.  Traditionally households were looking for safe investment options.  The second reason why other financial assets have not gained importance is the lack of financial literacy among the people.  Securities Exchange Board of India (SEBI), National Stock Exchange (NSE), Bombay Stock Exchange had empanelled resource persons to spread financial literacy across states.

In order to study the investment behaviour of investors SEBI Investors Survey 2015 was commissioned in the year 2015 and the survey was completed in the year 2018.  The result of the survey was revealed by SEBI in the month of August 2019.  The survey initially included 2,04,694 households and the demographic details were collected.  In the second stage 50,453 households were chosen for the final survey.  The respondents include both urban and rural households.
The findings which are similar to both urban and rural include:
·         More than 95% of the households prefer to invest in bank deposits
·         The second most preferred sector for investment was life insurance.
·         Precious metal was the third most preferred investment followed by post office savings and real estate.
·         Mutual funds emerged at the sixth place; stocks occupied the seventh place followed by pension schemes, company deposits, debenture, derivatives and commodity futures as preferred investment vehicles for the urban household.
·         Among the rural households less than 1% of the respondents were investors and also the awareness about equity and mutual funds was only 1.4%.
·         However 75% of the investors participated in the survey were first time investors.  So on a positive note; it is found that the investor base is increasing in India.
·         Middle income people save more as a percentage of their annual income compared to the high income people.
·         The primary motivation to save in securities market is capital gain followed by life style improvement plans.
·         Among the surveyed, the equity investors constituted of 23% government employees, 11% private employees and 17.5% business owners.
·         15% of the survey respondents are investors and 18% of the survey respondents have invested in equities.
·         The top sources of IPO news is newspapers and television.
·         Most interestingly, the survey results showed that perceptions of risk, return and liquidity are not similar with their actual risk, returns and liquidity profile.
·         Investors considered bonds and debenture as highly risky compared to mutual funds and equities due to their lack of awareness level.

The survey proved that both urban and rural households still prefer to invest in traditional assets over new alternative investments. There are two major factors that impact the investments of the households. Households prefer to invest in assets which are less risky and secondly lack of awareness about modern instruments made them to continue with the existing choices.

Comments

Post a Comment

Popular posts from this blog

Imposter Syndrome: The Paradox of Achievement

-
Image
 By Dr.J.J.Savithri If someone were to say you are not good enough, your presentation will be a disaster and everyone will know who you are, you might consider it abusive and might get upset. However 7 out of 10 do this to ourselves, we engage in such belittling self talk. We feel insecure, inadequate and have self doubts. We are experiencing Imposter Syndrome.  What is Imposter Syndrome It means to believe that you are not as competent as other perceive you to be. Most people experiencing imposterism suffer in silence and are afraid that that would be found out. Though there is no official diagnosis listed in the DSM, it is real. Psychologists Suzanna Imes and Pauline Rose Clance were the first to use this term and believed this was unique to women, specially the high achievers. Research later revealed it is experience by both men and women. Symptoms Lack of self awareness Self doubt Feeling of Inadequacy External locus of control Disowning success Underrating performanc...
Read more

The Body

-
Image
By Dr.S.T.Nambi If we ask what exactly is the most important thing in the world, people may come out with varied choices like wealth, power, love, security, success, health, food, water etc. In-fact, the most the most important thing is our body . Because it is the only place where we can reside in this world. All the senses need a body to reside and function. What are we without this body?  It is the question that baffles human kind since the time immemorial. Invariably, all the major religions of the world and sages try to answer this question. Let us avoid this metaphysical dilemma and accept the fact that we are nothing without this body – at least in this world!   World Health organization defines health as a state of complete physical, mental and social well-being and not merely the absence of disease or infirmity. But physical health is a pre-requisite for mental health. Even the great Tamil mystic Thirumoolar accentuates the importance of taking care of...
Read more

The Glass Cliff Phenomenon

-
Image
By Dr.J.J.Savithri All of us have heard of the Glass Ceiling, the invisible barrier that prevents women from rising to the highest position in an organization . Women in the Workplace 2019 , a study undertaken by McKinsey and LeanIn.Org indicated that only 34% of senior management comprised women and as we move up to C-level positions, this number dipped to 21%. But, there are women who break through the glass ceiling particularly when an organization is facing a crisis. However, they often fall victim to the “glass cliff”. An addition to the workplace vernacular is the ‘glass cliff”. British Professors Michelle K. Ryan and Alexander Haslam of the University of Exeter, United Kingdom, coined the term in 2005. In 2003, U.K.’s  Times  published a report stating “corporate Britain would be better off without women on the board” after analyzing the performance of 100 companies on the London Stock Exchange, and concluded that those with the most women we...
Read more