As the economy improves, investors are becoming more optimistic. Here are some findings of the J.P. Morgan Asset Management—ValueNotes Investor Confidence Index released in April.
Increasing confidence
The retail investor confidence index has been rising for three successive quarters.
Jul 2009 138.3
Sep 2009 145.1
Feb 2010 147.1
Figures calculated on a base of 100.
Reasons for optimism
Investors are most confident about the improving economic conditions and a rise in the BSE Sensex.
Improvement in Indian economic situation
Sep 2009 150.4
Feb 2010 156.3
Improvement in investment market
Sep 2009 146
Feb 2010 150
Improvement in global economic conditions
Sep 2009 140
Feb 2010 142
Increase in the BSE Sensex
Sep 2009 149.1
Feb 2010 152.6
Appreciation in investment portfolio
Sep 2009 143.4
Feb 2010 141.9
Change in amount of investments
Sep 2009 141.8
Feb 2010 138.7
Figures calculated on a base of 100.
Favoured investment avenue
The preference for stocks is rising, moving up by 10 per cent from September 2009 to February 2010.
Savings account: 89 per cent
Time deposit: 53 per cent
Insurance and retirement products: 75 per cent
Property: 45 per cent
Gold and other bullion: 43 per cent
Foreign currencies: 8 per cent
Stocks: 78 per cent
Mutual funds: 70 per cent
Bonds: 28 per cent
Derivatives: 13 per cent
Figures indicate percentage of respondents who have invested in each financial product; all per cent figures are rounded off; figures may not add up to 100
Expensive homes
Almost 75 per cent of respondents believe that the property prices will go up in the next six months.
Extremely unlikely: 3 per cent
Somewhat unlikely: 11 per cent
More or less the same: 12 per cent
Somewhat likely: 44 per cent
Extremely likely: 31 per cent
Sources of information
The primary source of information for investors is their personal network, including family, friends and colleagues (27 per cent), followed by advisers (24 per cent).
16 per cent: Broker services
24 per cent: Financial adviser
8 per cent: Bank relationship manager
12 per cent: News & financial media
4 per cent: Online resources
27 per cent: Personal network
9 per cent: Personal research
Will the Sensex go up in June?
As many as 21 per cent respondents believe the Sensex will trade between 18,000-19,000, while 22 per cent feel it may go beyond 20,000.
12,000-13,000: 2 per cent
13,000-14,000: 1 per cent
14,000-15,000: 6 per cent
15,000-16,000: 5 per cent
16,000-17,000: 9 per cent
17,000-18,000: 15 per cent
18,000-19,000: 21 per cent
19,000-20,000: 12 per cent
20,000-21,000: 14 per cent
21,000-22,000: 5 per cent
22,000-23,000: 2 per cent
23,000-24,000: 1 per cent
