- Findings of the eighth wave of the J.P. Morgan Asset Management –ValueNotes Investment Confidence Index (ICI).
Investing Confidence in India
- Retail Investor Confidence Index, despite witnessing a 4.2-point decline from last quarter, ranks the highest (137.5).
- Advisor Confidence Index comes a distant second (124.9)
- while, Corporate Confidence Index touches its lowest (109).
- Investor Confidence :
- Confidence among older investors (age 60 to 65 years) rebounds 15 points after dropping to 124 points last quarter. Retail investors’ activity (61%) in mutual funds has improved significantly (11 percentage points) since last quarter.
- Mutual Fund Activity :
- Retail investors’ activity (61%) in mutual funds has improved significantly (11 percentage points) since last quarter.
- Banking and financial services emerges as the most attractive sector for investment among retail investors (36%) and advisors (56%).
- Retail investors (81%) and advisors (76%) believe that the benchmark BSE Sensex will trade between 20,000 and 22,000 in December 2011.
GDP and Inflation :
- Indian GDP growth still holds traction, as it has been voted the biggest postive among all three categories,
- retail (23%), corporates (20%) and advisors (31
- India Inc. most worried about inflation. 58% corporates believe inflation to be a leading negative economic indicator
India Geographical Confidence Index :
- Retail confidence across all cities hovers below 150, but Delhi/ NCR emerges as an outlier displaying highest confidence (158).
DEBT Fund Investing
- Investment activity across all instruments falls among corporate treasuries, with activity in debt mutual funds (74%) falling 18 percentage points since last quarter. Money market mutual funds (84%) remain the most popular debt instrument.
Indian Investing Abroad :
- Asian markets continue to be the most favoured investment destination for retail investors during March 2011 (28%) and July 2011 (32%).
