SURVEY CONDUCTED TO OUTLINE INVESTOR PREFERENCES
WHILE MAKING INFORMED INVESTMENT DECISIONS
OVER 70% RESPONDENTS PREFER TO LOOK AT INFORMATION
FROM MULTIPLE SOURCES WHILE MAKING INVESTMENTS
OVER 93% RETAIL INVESTORS CONSIDER MARKET NEWS
IMPORTANT FOR TRADING DECISIONS
NEARLY 80% RETAIL INVESTORS SEEK STOCK RECOMMENDATIONS
FROM MULTIPLE BROKING HOUSES BEFORE INVESTING
OVER 95% RESPONDENTS FEEL THAT ANALYSING THEIR PAST TRADING PATTERNS WOULD HELP THEM INVEST BETTER
BROKERAGE PLAYS AN IMPORTANT ROLE IN CHOOSING TRADING PLATFORMFOR NEARLY 80% RESPONDENTS
RETAIL INVESTORS SEEK INFORMATION ANALYSIS & REAL-TIME MONITORING TOOLS FOR MAKING INVESTMENT DECISIONS
February 18, 2016: Reliance Securities Limited, the broking and distribution arm of Reliance Capital Limited, today unveiled its first retail investor survey.
The survey was conducted to outline investor preference and understand options considered by retail investors while making their investment decision in the stock market. More than 1000 retail investors responded to the online survey conducted across respondents in the age group of 25-40 years.
Commenting on the findings, Mr. B. Gopkumar, Chief Executive Officer (CEO) – Broking and Distribution business, Reliance Capital, said: “The survey clearly states that retail investors would like to look at multiple sources – including brokerage reports and news – for information before making any investment decision. This creates a space for new intelligent platforms that can aggregate information from multiple sources and provide them to these investors for better investing decisions”.
The survey revealed that 70% retail investors sought information from multiple sources for making their decisions- out of which 68% of the respondent looks for two or more resources for the same.
Market news emerged as a very important component when it comes to stock-picking with more than 93% respondents saying they rely on market news for investing. Close to 66% considered it to be highly important factor for decision making.
Interestingly, more than 80% retail investors said they preferred to check stock recommendations from multiple broking houses before investing; with 35% of the respondent feel its highly useful to look for multiple opinions.
Given the opportunity, 95% investors are ready to embrace technology that helps them not only monitor news on their current portfolio but also help them decipher past trading patterns to enable better decision making in future with 75% respondent saying its highly important to track the same for better future profits.
“An interesting trend that came up was that investors would like see their own trading trends in the past to make investing decisions. Usually, the preference is on analyzing market trends and particular stock trends for investing but when given an option for evaluating their own trends of investing, a majority of these respondents felt that this would be also useful to identify gaps and help them invest better” said Mr. Gopkumar.
Brokerage has emerged as one of the key component while selecting a trading platform. Over 80% of respondents felt that brokerage/price plays a key role in choosing the right broking house.
“Price continues to be an important factor while choosing any broking house for retail investors. There is a huge opportunity for value based broking models for retail investors. Trading technology has been highly skewed towards providing better options for retail investors. There is clearly a need that was felt by retail investors to get access to technology that can un-complicate the stock market and guide them to invest better with real time monitoring” said Mr. Gopkumar.
