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A study done by Mirae Asset Mutual Fund on investor perceptions about ETFs reveals that the primary reason to invest in ETFs is expectation of generating market returns followed by outperforming active funds.
Among other reasons to invest in ETFs are liquidity, market speed and innovative products.
The study further shows that many ETF investors consume knowledge on personal finance websites and YouTube to make these investment decisions.
Among other key findings are:
- Investors from Tier II cities show high interest to invest in ETFs. Tier II cities are non metro cities like Amravati, Belgaum, Dehradun, Guwahati and Raipur.
- ETFs are more popular among investors in the age group of 36-45 years
- More than 60% of the respondents claimed to have a good understanding about ETF products offered by the MF industry
- Large cap & mid cap-based ETFs is among the most sought-after category among ETFs
- Many investors look to invest in ETF for time horizon of 1 and 3 years
- Hidden risk and lack of knowledge are major deterrent for ETF investors
Swarup Mohanty, Vice Chairman and CEO, Mirae Asset MF said, “Learnings from this report will not just provide valuable insights of the investors who are already investing in ETFs but also what the investors are looking forward from the ETF providers. This survey may overall benefit ETF Industry in India.”
“ETFs are fast emerging as popular investment tools among Indian mutual fund investors for their transparency as well as market speed. It is heartening to note that smaller towns are also emerging as ETF investment hubs which augurs well for the overall market”, Mohanty added.
Over 2100 investors spread across 15 cities participated in this survey done by YouGov India on behalf of the fund house.
