Super investors rely on the advice of individual financial advisors for investing in mutual funds; they avoid bank relationship managers, shows a survey conducted by Nielsen Group titled ‘Super Investors: India’s New Wealth Generators.’
Nielsen defines super investor as a more active, prolific and aware consumer having a higher risk appetite than the average consumer.
Of the super investors Nielsen polled, 75% were male and aged 35 to 45 years. In case of mutual fund investors, the average age was between 30 to 40 years. 94% investors were from Bangalore, Pune and Mumbai.
When quizzed about the four most important criteria for choosing mutual funds, they ranked IFAs advice as number one, followed by scheme performance, AMC brand, and historical fund performance of AMC.
When asked about the most popular investment choice, the survey found that mutual funds are the most preferred investment products for businessmen and self-employed professionals.
Another trait of super investors is that they invest aggressively and are more engaged with their portfolios than average investors. They prefer investing more than saving and consider mutual funds as wealth generators. Also, they tend to invest lump sum. “In the case of mutual funds, super investors tend to invest 1.6 times more than the regular customer. They mostly make investments with lump sum amounts. The average minimum investment is at least Rs.50, 000,” finds the survey.
While super investors have a higher risk-appetite, they tend to diversify their portfolios by investing in gold and fixed deposits.
