Awareness Levels of Financial & Investment Instruments Mutual Funds and Equities is just 28.4% and 26.3%, respectively - MYREALITY.In, Real Estate, Share Market, Mutual Fund, Insurance
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Thursday, April 06, 2017

Awareness Levels of Financial & Investment Instruments Mutual Funds and Equities is just 28.4% and 26.3%, respectively

 Awareness Levels of Financial and Investment Instruments

From SEBI INVESTOR SURVEY 2015
Nearly all the survey participants are staggeringly aware of Bank Deposits (99.9%), Life Insurance (94.7%) and Post Office Savings (89.4%), familiarity with Mutual Funds and Equities is just 28.4% and 26.3%, respectively .

 On the other hand, awareness of Derivatives (10.4%) and Futures (9.5%) is even lower and surprisingly, Debentures (13.1%), despite being higher in the capital stack and having a declared interest rate, ranks low too. 

Correspondingly, in 2003, Senetal 29 observe that the secondary corporate bond market in India is practically non-existent and in March 2015, Gwalani and Bharati also find that awareness and investments in the corporate bond markets remain abysmally low.



For derivatives, on the other hand, it is not the market’s novelty but a 1950s government statute that rationalizes the low level of awareness. The Bombay Cotton Traders Association started futures trading in 1875 and by the early 1900s, India had one of the largest futures trading markets in the world 31

However, cash settlements and trading in options and derivatives were banned in 1952 till (acting on the recommendations of the LC Gupta Committee) SEBI approved derivatives trading from June 2001. 

In the interim half a century, derivatives remained restricted to the shadow ‘badla’ markets (banned by SEBI in 2001) and definitely out of reach of retail investors

Since 2008–09, equity derivatives at the NSE have increased from an average daily turnover of Rs. 45,310 crore to Rs. 1,93,212 crore in 2015.

 Although a relatively smaller market, currency derivatives has seen a sharper growth, moving from Rs.1,167 crore to Rs. 18,602 crore in daily turnover in the same time period

Furthermore, it is clear from the SIS and RBI data that institutional investors drive almost the entire volume and growth of this market.
Awareness Levels of Financial & Investment Instruments Mutual Funds and Equities is just 28.4% and 26.3%, respectively Reviewed by S. Chitra on April 06, 2017 Rating: 5  Awareness Levels of Financial and Investment Instruments From SEBI INVESTOR SURVEY 2015 Nearly all the survey participants are stagg...

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