The results of the second wave of the J.P. Morgan Asset Management – ValueNotes Investment Confidence Index (ICI) in India suggest that confidence has picked up across all segments in the financial and investment community. While confidence across all indicators increased in September 2009, the highest increase was recorded in expectation of an improvement in the global economy and an increase in the amount of investments. This is a re-affirmation from the investment community that appetite for investing is definitely back.
Key findings include –
Advisor confidence has recorded the maximum growth, increasing 15.7 points, followed by corporate (9.0) and retail (6.8)
56% of retail investors expect their income will increase and they will make additional investments over the next six months as compared to 48% in July 2009
Investors (35%) and corporates (48%) consider inflation as the most negative economic indicator in India, while advisors (37%) view the high government borrowings / fiscal deficit with concern
A majority (50%) of corporate treasuries are of the view that GDP growth meeting/exceeding expectations is the biggest positive economic indicator, while there was no clear consensus among investors and advisors
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To read about the findings of the other waves of the Investment Confidence Index, follow the links below: