The Trust survey by CFA institute revealed that 87 percent of retail investors in India trust the financial services industry. This brought the country at the top of the list of the 15 markets surveyed. While Singapore and Australia are among those that reported the biggest drops, India has recorded the biggest rises along with Hong Kong SAR, the UAE, and Brazil, when comparing the trust levels between 2018 and 2020.
Around 3,525 retail investors and 921 institutional investors were interviewed for the survey in October and November last year. About 87 percent of the Indian investors trust domestic financial markets which were 71 percent in 2018, reveals the fourth edition of the survey report. When compared, 47 percent of investors globally, and 49 percent of investors in the Asia Pacific, trust the financial services industry.
Australia, Brazil, Canada, mainland China, France, Hong Kong SAR China, Germany, India, Japan, Mexico, Singapore, South Africa, UAE, UK, and the US were the markets that have been surveyed. “The Indian equity markets have supplied good returns over the long run and this helps explain optimism and trust in this system, as well as investor confidence. Trust plays an important role in the world of finance, especially during challenging times”, says Vidhu Shekhar, Country Head, CFA Institute.
Shekhar added “ecosystem participants, including security regulators, are putting significant effort into increasing financial literacy, transparency, and fair market practices that can provide a foundation for increased trust. This has followed in improved outcomes for everyone, but there is still a lot that needs to be done in these areas”. Based on the survey, it was understood that 87 percent of retail investors in India trust the financial services industry, and this finding puts the country at the top of the list of the 15 surveyed markets. Whilst Australia ranked last, with only 24 percent of respondents saying that they trust the industry.
Both retail and institutional investors in 15 markets globally, were studied in the report for the survey, measuring their trust level in the investment industry. This uncovered that retirement is the priority investment goal for only 18 percent of Indian investors, far less than the 50 percent of global investors.
Also, India has come out as the best performing equity market in the world three months after the sharpest sell-off in history. The benchmark Nifty 50 has gained 35.2 percent in the past three months, the best among the top global indices, according to the data from Bloomberg. The indices in other major markets including the US, Japan, Germany, and France that rose by 28 percent, 25 percent, 29 percent, and 18 percent respectively during the period.
