DSP BlackRock Investor Pulse study 2014 I di 2014 India findings - PowerPoint PPT Presentation

DSP BlackRock Investor Pulse study 2014 I di 2014 India findings fi di Cicero Research 14 th January 2015 Media presentation

Global Overview and Methodology Regions/ Markets: 20: US, Canada, Europe (UK, Germany, Italy, France, Belgium, Netherlands, Sweden), LAI (Spain, Mexico, Brazil, Colombia, Chile), Asia (Hong Kong, Taiwan, Singapore, China, Japan, India) Number of completes: ‘Nat rep’- 27,500, including 7,296 ‘Mass Affluent’ respondents Research Method: Online self-completion Sweden: 1,000 Germany, Italy (2,000 UK:2,000 Canada: 1,000 each), France, Belgium and Netherlands China: 2,000 US:4,000 Spain: 1,000 Japan: 1 000 Japan: 1,000 Taiwan: 1,000 Mexico: 1,000 India: 1,500 Hong Kong: 1,000 Colombia: 1,000 Singapore: 1,000 Si 1 000 Brazil: 1,000 Chile: 1,000 New to 2014 Markets in 2013 N.B. Australia/ Switzerland not included in 2014

Respondent Profile: India The India sample is representative of the online Th I di l i t ti f th li % Total sample (n=1,500) population, which tends to be more urban and wealthier than average. As a result poorer people Affluence level and those living in rural areas where online penetration may be lower are under-represented. p y p Mass Affluent Mass Affluent 601 601 40% 40% Mass Retail 899 60% In addition, all interviewing was conducted in English. Gender All respondents are household financial decision p Men 767 51% makers age 25-74. Women 733 49% Mass Affluent group: Age D fi Defined in India as those satisfying at least one of the d i I di th ti f i t l t f th following criteria: 25-34 484 32%  Personal income of INR 25 Lakh 35-44 415 28%  Household income of INR 40 Lakh 45 54 45-54 310 310 21% 21%  Investable assets of INR 40 Lakh 55-64 207 14% Mass Retail group: 65-74 84 6% Defined as all other respondents Defined as all other respondents. 3

Executive Summary: Key Indian Messages 1 Indians are positive about their financial future, feel in control of their finances and want to invest more want to invest more 2 Indians are investing actively, but look for safe and consistent returns while investing 3 Preparing for life’s big events is a key driver of savings and investment behaviour 4 When it comes to financial advice, satisfaction and reliance levels are high, and the advised investor feels better prepared 5 4

Section 1 - Financial Sentiment, Optimism and Control Indians are positive about their financial future, feel in control of their finances and want to invest more p

Sentiment Towards Economy: Global vs India Global India Don't know Don t know Don't know 3% 1% Staying about Getting better the same 24% 22% Staying about the same 37% Getting better g 56% Getting worse 19% Getting worse 38% The majority of Indians - 56% - feel that the economy is getting better, significantly higher than the rest of the world Source: Q16 - Do you think the Country’s economy is getting better, getting worse, or staying about the same? BASE: Global (n=27500) India (n= 1500) MA (n= 601) 6

Positivity About Financial Future – Global vs India NET: Negative NET: Negative NET: Positive NET: Positive GLOBAL 41% 56% Europe 49% 47% LAI 32% 67% Asia Asia 34% 34% 64% 64% Greater China 29% 69% US 45% 52% Canada 44% 52% UK 45% 51% Germany Germany 42% 42% 54% 54% Italy 58% 40% France 62% 33% Belgium 56% 39% Netherlands 41% 51% Sweden 40% 55% Spain Spain 58% 58% 38% 38% Mexico 34% 65% Brazil 22% 77% Colombia 15% 84% Chile 30% 69% Hong Kong 30% 67% Taiwan Taiwan 42% 42% 56% 56% Singapore 40% 57% China 21% 77% Japan 23% 72% India 18% 81% Indians are very positive about their financial future – they have the highest feelings of positivity in Asia, and second highest globally Source: Q9 - Overall, which, of the following words best describes how you feel about your financial future? BASE: Global (n=27500) India (n= 1500) 7

Control of Financial Future: Global vs India NET Not in control NET: Not in control NET In control NET: In control GLOBAL 17% 55% Europe 21% 47% LAI 11% 61% Asia Asia 9% 9% 67% 67% Greater China 6% 74% US 28% 46% Canada 20% 47% UK 19% 52% Germany Germany 22% 22% 46% 46% Italy 26% 44% France 20% 42% Belgium 25% 41% Netherlands 15% 54% Sweden 21% 51% Spain Spain 24% 24% 45% 45% Mexico 11% 59% Brazil 7% 73% Colombia 5% 67% Chile 8% 59% Hong Kong 11% 59% Taiwan Taiwan 6% 6% 70% 70% Singapore 13% 56% China 4% 84% Japan 23% 39% India 6% 75% In line with their high levels of positivity, the majority of Indians feel in control of their financial future Source: Q10 - To what extent do you feel in control of your financial future? Please use a scale of 1 to 5, where 1 means not at all in control and 5 means completely in control. BASE: Global (n=27500) India (n= 1500) 8

Willingness to Invest in Stocks Compared to Five Years Ago Global India Not applicable Not More 6% Unsure applicable interested 19% 4% 27% About the same 17% Unsure 5% More interested 51% Less interested 18% 18% Less Less About the interested same 23% 31% The majority of Indians - 51% - are more interested in investing in stocks compared to five years ago Source: Q140 - Compared to 5 years ago, are you more or less interested in investing in stocks? BASE: Global (n=27500) India (n= 1500) MA (n= 601) 9

Willingness to invest in Equities Over the Next Twelve Months GLOBAL Add more money 5% 34% 52% 10% Keep the same Asia 34% 51% 11% 4% Take money out India India 54% 54% 33% 33% 12% 12% 1% 1% D Don't know 't k Mass … 62% 28% 9% 1% Mass Retail 46% 38% 15% 2% Male 56% 29% 13% 2% Female 51% 37% 10% 1% Age 25-34 56% 34% 9% 2% Age 35-44 62% 29% 9% Age 45-54 48% 34% 15% 2% Age 55-64 48% 34% 16% 1% Age 65-74 47% 35% 12% 6% Advised 62% 29% 8% 1% Not Advised 47% 36% 16% 2% Indians are much more likely to increase their holdings of equities over the next twelve months than the rest of the world Source: Q74 - Equities/Stocks/Shares - For each savings and investment product that you currently have (US/ LAI: your household currently has), over the next 12 months …? BASE: Global (n=8677) India (n= 657) 10

Sentiment Towards the Job Market: Global vs India Global India Don't know Don't know 1% 3% Staying about Getting better the same 25% 21% 21% Staying about the same 35% Getting better Getting better 54% Getting worse 19% 19% Getting worse 40% The majority of Indians - 54% - feel that the job market is getting better Source: Q17 - Do you think the Country’s job market is getting better, getting worse, or staying about the same? BASE: Global (n=27500) India (n= 1500) MA (n= 601) 11

Confidence in Achieving Financial Goals: Global vs India % Confident of achieving GLOBAL 69% Saving money Saving money India 87% Saving/investing to ensure that I can live comfortably 68% Saving/investing to ensure that I can live throughout retirement 84% comfortably throughout retirement 73% Growing my wealth Growing my wealth 90% Being able to earn or draw an income from my 70% Being able to earn or draw an income from my savings / investments savings / investments 88% 78% Preserving/ holding on to my wealth Preserving/ holding on to my wealth 90% 81% Financing my child/children's education Financing my child/children's education 93% 79% 79% Paying off credit cards or other debts Paying off credit cards or other debts 94% 62% Getting a better paid job Getting a better paid job 87% 82% Paying off my mortgage on my only/ main home Paying off my mortgage on my only/ main home 92% Long-term healthcare/Paying for long term 65% Long-term healthcare/Paying for long term 84% 84% care/health care for me or spouse care/health care for me or spouse… care/health care for me or spouse… care/health care for me or spouse… 80% Starting/ growing my own business Starting/ growing my own business 88% 71% Saving for a deposit/ down payment for a home Saving for a deposit/ down payment for a home 89% 73% Leaving an inheritance Leaving an inheritance 90% 74% 74% Providing financial support to elderly relatives Providing financial support to elderly relatives 89% 78% Paying off student loans Paying off student loans 85% 90% Child's marriage Child's marriage 90% Confidence in achieving financial goals is high. Indians are most confident about being able to pay off debts and mortgages, and financing their children’s education Source: Q14SUM1 - Summary Table % Confident - Overall, how confident are you that you will achieve each of these priorities? BASE: Global (n=26380) India (n= 1482) 12