Investors’ confidence in equity markets has revived. A recent CFA Institute study titled ‘From Trust to Loyalty: A Global Survey of What Investors Want’ revealed that Indian investors have much higher levels of trust in the financial services industry compared to investors in other markets.
The report has found that 90 percent of investors in India believe the capital market is functioning well and will grow in the coming years. The report has attributed this to efforts of the advisory community and regulators for building trust in the financial services industry among investors.
China followed India with 89% of Chinese investors having conviction in the financial services industry.
The report said, “Among retail investors, those in India and China had much higher absolute levels of trust (90% and 89% respectively) compared to investors in other markets, though these are also the markets where relationships with investment managers are newer — only 22% in both China and India have worked with their primary investment firm for seven or more years.”
CFA Institute has conducted this survey with 3,312 retail investors across four continents - North America, Europe, Asia (including countries like India) and Australia.
Interestingly, in developed nations like UK and US only 44% and 54% of retail investors trust the financial services industry. Also, 39% of global retail investors still had trust issues with the industry, the survey revealed.
