INDIAN INVESTORS ARE MOST BULLISH

Domestic investors are optimistic about the stock markets though they plan to adopt a more conservative strategy for near future, according to a global investor survey by Franklin Templeton. "Indian investors (83 per cent of respondents) are optimistic about their home country stock markets. However, similar to the global trend, majority of the Indian investors are planning to adopt a more conservative strategy in 2013," the company said in a statement. Franklin Templeton polled 9,518 investors in 19 countries across Asia Pacific, the Americas and the Europe. Respondents in India have the highest return expectations amongst all countries surveyed –- 15 per cent in 2013 and 22 per cent over the next 10 years. However, high inflation is clearly the top factor making investors reluctant to invest in the stock markets in India, followed by the state of the global economy as another factor.
"It is very clear that the industry needs to do a better job of increasing awareness and acceptance of equities and fixed income as core asset classes. There continues to be a strong preference for physical assets such as gold and real estate, and an investing-at-home bias that needs to change," Franklin Templeton India President Harshendu Bindal said.According to the survey, purchasing new home is the top investment goal for investors in India for 2013, followed by precious metals. "Financial savings need to be encouraged through a mix of policy incentives and increased awareness. This will not only benefit the average investor, but also create long-term, productive savings pool essential for economic growth," according to Bindal.