jpmam vn ici wave 6 presentation-jan2011
TRANSCRIPT
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
J.P. Morgan Asset Management ValueNotesInvestment Confidence Index Wave VI, December 2010
Indias only Investor and Advisor focused sentiment indicator
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J.P. Morgan Asset Management Standard Template 2009.ppt
J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 20101
J.P. Morgan Asset Management ValueNotes Investment Confidence Index
Background
Introduction to the indices
Survey methodology
Respondent profile
Investor and advisor confidence Key findings
Investment activity Retail investors and corporate treasuries
Other sentiment influencers
J P M A t M t St d d T l t 2009 t
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J.P. Morgan Asset Management Standard Template 2009.ppt
J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Background
The inaugural Investor Confidence Index was launched in the UK in the early 1990s
Subsequently launched in Germany, France and other European countries
In Asia, similar Investor Confidence Indices launched by the firm in Hong Kong, Japan and Taiwan
The Hong Kong Investor Confidence Index has just completed its 17th wave (3Q 2010) and continues to evokemuch interest
The J.P. Morgan Asset Management ValueNotes Investment Confidence Index (ICI) was launched in India inJuly 2009
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J.P. Morgan Asset Management Standard Template 2009.ppt
J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
J.P. Morgan Asset Management ValueNotesInvestment Confidence Index
The definitive indicator of investment confidence levels across key investment centers
Focused on three important investor segments: retail investors, corporates and the advisor community(distributors)
Key objectives
To quantify confidence in the investment environment
To study investment behavior and sentiment over time based on key factors
To evaluate trends in such behavior
To study short-term and long-term changes in investment outlook
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J.P. Morgan Asset Management Standard Template 2009.ppt
J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Quarterly indices tracking sentiment across the investment community
Investment Confidence Index: A composite index reflecting the combined sentiment of retail investors,corporates and distributors
Retail Investor Confidence Index: Based on a survey of retail investors across India
Corporate Investor Confidence Index: Based on a survey of corporate treasuries across India
Advisor Confidence Index: Based on a survey of distributors of financial products
Banks, National/Regional Distributors (N/RDs) and Independent Financial Advisors (IFAs)
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Survey Methodology: face to face, online and telephonic interviews
Screener questions capture respondent profile
Six index questions - capture respondents confidence, over the next sixmonths
1) Improvement in the Indian economic situation
2) Improvement in the general Investment market environment and atmosphere3) Improvement in the global economic situation
4) Increase in the BSE Sensex
5) Appreciation in personal/clients investment portfolio
6) Increase in personal/clients investments
Other sentiment drivers
Delhi
Ahmedabad
Mumbai Pune
Kolkata
ChennaiBengaluru
Hyderabad
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8/54J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 20107
Respondent Sample Wave VI, December 2010
92.5% of retail investors invested in stocks and/or mutual funds over the last 12 months
City Delhi / NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
Retail 12% 12% 12% 14% 13% 12% 12% 13%
IFAs 13% 12% 13% 13% 12% 12% 11% 14%
Corporate 22% 36% 6% 6% 12% 8% 6% 4%
Wallet Size(INR)
2 to 5 lakhs 5 to 10 lakhs 10 to 25 lakhs 25 to 50 lakhs 50 lakhs +
Retail 35% 31% 17% 11% 6%
Treasury size
(INR)
10 lakhs to 1
crore
1 crore to 50
crores
50 to 150
crores
150 to 500
crores500 crores +
Corporate 4% 10% 10% 14% 62%
Category Retail CorporateIFAs
(Advisors)
Banks
(Advisors)
NRDs
(Advisors)
Number of respondents 1,671 51 254 20 21
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Investor and Advisor Confidence, Wave VI, December 2010
- Key Findings
J.P. Morgan Asset Management Standard Template 2009.ppt
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Investment Confidence Index (ICI) nears all-time high
Investment Confidence Index
Investment Confidence Index stands at 146.3 in December 2010, up 0.9 points from last quarter
Confidence 0.1 point lower than highest exhibited in September 2009 (146.4)
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ICI holds steady across categories
Advisor confidence sustains recovery to reach 147.2 points; increasing 11.8 points from its low in June 2010
Retail confidence (159.5 points) witnessed a marginal drop (0.6 point) for the first time since July 2009
Retail confidence highest in December 2010
Retail vs. Corporate vs. Advisors
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Fears of global economic worries recede
Advisors (173) more optimistic than retail investors (153) and corporates (137) on increase in investments
Indian economy still the biggest confidence booster among retail investors (168) and corporates (143)
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Advisors near-perfectly aligned; Recovery in Banks confidence
IFAs vs. Banks vs. N/RDs
IFAs (146.9), Banks (147.5) and N/RDs (147.2) record similar confidence levels
Banks confidence level rebounds to 147.5 points, the highest across all advisor categories for the quarter
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201013
Advisors confident of clients increasing investments
Banks (165.0) more optimistic than IFAs (155.7) and N/RDs (157.1) of an appreciation in clients portfolios
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201014
Realty / Infrastructure; steady confidence among employees & treasuries
Retail investors from IT/BPO/Outsourcing (154) sector increase the most (26 points) in confidence
Confidence among Retail investors from Retail and Hospitality sector highest (167) after seeing low of 117 inFebruary 2010
Corporate confidence (Dec 2010)- 131.2Corporate confidence (Sep 2010) -131.8
Corporate Confidence (Jun 2010) -134.0Corporate confidence (Feb 2010) -130.7
Retail confidence (Dec 2010)- 159.5Retail confidence (Sep 2010) -160.1
Retail Confidence (Jun 2010) -151.7Retail confidence (Feb 2010) -147.1
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201015
Pune investor confidence gets a shot in the arm
Confidence among Retail investors in Pune rises a whopping 32 points to 176 as against 144 in June 2010
Delhi/NCR is the second most confident city among both retail investors and IFAs; steady increase inconfidence over the year
Retail confidence (Dec 2010)- 159.5Retail confidence (Sep 2010) -160.1
Retail Confidence (Jun 2010) -151.7Retail confidence (Feb 2010) -147.1
Corporate confidence (Dec 2010)- 131.2Corporate confidence (Sep 2010) -131.8
Corporate Confidence (Jun 2010) -134.0Corporate confidence (Feb 2010) -130.7
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201016
Retail investors hopeful of an increase in income as well as investments
Majority retail investors (69%) expect both income and investments to increase compared to the beginning ofthe year (60% in February 2010)
0
1
2
4
0 1 2 4
Feb 2010
Dec 2010
Unlikely to increase Remain the Same Likely to increase
Increase
Same
Decrease
60%
10%
2%
6%
7%
2% 0%
Increase / decrease in personal income
Increase/Decreaseinam
ountof
investments
6%
691%
4% 1%
1%
11% 11%
7%
2% 0%
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201017
Younger investors more confident once again
Age group 25 to 30 years most confident (164) followed by the age group 22 to 25 years (161) points
Older investors (age group of 60-65) confidence see a sharp decline (-15 points) over June 2010 to a years lowof 140 points.
Retail confidence (Dec 2010)- 159.5Retail confidence (Sep 2010) -160.1
Retail Confidence (Jun 2010) -151.7Retail confidence (Feb 2010) -147.1
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201018
HNI investors sustain confidence
Investors with wallet size INR 25 to 50 lakhs and INR 50 lakhs and above most confident at 162 points each.
Investors with wallet size INR 2 to 5 lakhs (158 points) lowest on confidence yet again
Retail confidence (Dec 2010)- 159.5Retail confidence (Sep 2010) -160.1
Retail Confidence (Jun 2010) -151.7Retail confidence (Feb 2010) -147.1
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201019
Stocks Down; Mutual Funds Rise
Investment activity in Stocks saw a dip this quarter by 8 percentage points to 68% while mutual funds gain 6
percentage points to reach 66%.
Investment in Retirement & Pension Products (56%) took a beating this quarter; falling 13 percentage points.
Retail investment activity in the past 12 months
*
* Other stock market derivative products (e.g. futures, options)
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201020
Corporates buoyant in their investment activity
Corporate investment activity in the past 12 months
Investment activity increases for all investment instruments except debt mutual funds
Debt mutual funds slip further, down to 90% as compared to 94% in September 2010
* Other stock market derivative products (e.g. futures, options)
*
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201021
Fixed Maturity Plans prove safe haven for corporates; MMFs suffer
Corporate investments in debt mutual funds in the past 12 months
FMPs increase 15 percentage points over the last quarter, record highest gain across all instruments for
December 2010
Money Market Funds slump by 21 percentage points, all other instruments record highest investment activitysince July 2009
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201022
Other sentiment drivers
- Sensex, economic signals, expectations on income
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201023
Investors and advisors expect Sensex to reach 22,00023,000 in June 11
Retail investors (68%) and advisors (85%) opine that the Sensex will trade at higher levels in June 2011
Advisors (43%) and investors (23%) reckoned the Sensex would trade between 18,000 19,000 in December2010 while it traded between 19,500 20,500
Advisors more confident of BSE Sensex trading at higher levels in June 2011
BSE SensexDuring the
survey
BSE Sensexin December
2010
BSE SensexDuring the
survey
Retail investors and advisors conservative of BSE Sensex levels in December 2010
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201024
GDP Growth: Key economic driver in India
Retail (20%), Advisors (49%) and Corporate (53%) consider GDP growth to be the most positive economic
indicator
Corporate (12%) and retail (19%) investors consider good corporate results the second-most positive indicator
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201025
GDP Growth the strongest +ve economic indicator throughout 2010
Resurgence in corporate profits not the most positive indicator for retail investors in December 2010
December 2010 September 2010
June 2010 February 2010
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201026
Corruption joins inflation as a confidence killer
63% of corporates are most wary about inflation followed by 48% of advisors and 19% of investors
Corruption a cause of concern for retail investors(19%) and advisors (16%)
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201027
Inflation keeps the financial community anxious
Fears due to high government borrowing / high fiscal deficit subsides as the year progresses
September 2010
June 2010
December 2010
February 2010
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201028
Corporate profits to grow further
81% of retail investors positive about a growth in their income in the coming 6 months
Corporates upbeat (85%) of an increase in profits (NPAT) this quarter, increase 9%-points over last quarter
Retail Investor increase in personal income
Corporate treasuries in profits (NPAT)
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201029
Key investment influencers
- International markets, information sources, advisory services, capital
investments
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201030
Advisors recommend Brazil and China; retail investors prefer USA
47% retail investors and 44% advisors express interest in international market investments
Of the 47% retail investors, 24% favoured USA as their preferred investment destination, while of the 44% ofadvisors, 56% would recommend China to investors
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201031
China preferred by all categories of advisors
33% of IFAs, 45% of Banks and 52% N/RDs would recommend investing in destinations other than India
China was the most preferred destination across advisors; NRDs (60%), followed by IFAs (47%) and Banks(36%)
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201032
News and financial media least preferred source of information
27% of retail investors favor Broker Services followed by personal network at 24% as their primary information
sources for making investment decisions
A meager 6% of investors prefer news and financial media for their investment decisions
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201033
Financial planning & advice most offered advisory service
Financial planning & advice (82%) and financial product advice (76%) are the top two services offered byadvisors
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201034
Small size treasuries will definitely undertakecapital investments
Large treasuries (INR 500 crores and above) least likely to invest in capital intensive projects in the next 6-12
months
Capital investment projects expected in the next 6 12 months
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201035
Investors still positive about increase in property prices
Expectations of an increase in property prices have remained flat (74% - 78%) over the year
Increase in property prices in the next 6 months
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201036
Thank you
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 201037
Annexure
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Indices by city December 2010 (Wave VI)
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December 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad AhmedabadRetail Confidence Index 164.6 165.3 149.2 161.9 146.8 176.3 152.0 159.8
Improvement in Indian economicsituation
169.8 167.5 162.4 170.3 156.2 184.4 165.9 167.3
Improvement in investment marketenvironment and atmosphere
162.6 168.0 151.0 161.7 148.1 174.1 150.2 167.5
Improvement in global economicenvironment
161.6 165.1 147.3 158.6 144.3 181.0 158.2 140.0
Increase in BSE Sensex 165.0 164.2 155.8 157.5 145.5 180.2 150.5 164.0
Appreciation in investmentportfolio
166.7 162.7 140.5 158.4 144.5 181.2 151.0 164.3
Change in amount of investments 162.1 163.9 137.9 165.0 142.4 156.6 136.2 155.6
December 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
IFA Confidence Index 158.9 154.0 139.0 145.8 151.7 152.2 125.9 146.1
Improvement in Indian economicsituation
170.3 154.8 145.7 154.7 148.3 143.5 124.1 148.6
Improvement in investment marketenvironment and atmosphere
154.7 151.6 131.4 134.4 146.7 148.4 129.6 138.9
Improvement in global economicenvironment
131.3 127.4 124.3 118.8 125.0 124.2 105.6 134.7
Increase in BSE Sensex 160.9 154.8 131.4 126.6 150.0 148.4 111.1 144.4
Appreciation in investment
portfolio 160.9 161.3 148.6 160.9 156.7 167.7 135.2 152.8
Change in amount of investments 175.0 174.2 152.9 179.7 183.3 180.6 150.0 156.9
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Indices by city September 2010 (Wave V)
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September 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad AhmedabadRetail Confidence Index 159.2 163.5 151.3 169.0 156.3 151.5 162.5 167.7
Improvement in Indian economicsituation
172.4 169.1 158.4 176.3 162.5 158.3 177.9 170.1
Improvement in investment marketenvironment and atmosphere
165.8 168.7 153.1 170.8 158.6 152.9 179.4 167.2
Improvement in global economicenvironment
143.8 136.2 148.6 165.7 151.0 127.0 166.2 161.2
Increase in BSE Sensex 166.0 169.8 154.6 171.5 161.5 162.0 163.2 172.4
Appreciation in investmentportfolio
152.2 165.4 147.1 159.4 150.0 155.9 151.7 165.9
Change in amount of investments 155.2 171.7 146.2 170.3 154.4 152.9 136.5 169.7
September 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
IFA Confidence Index 149.7 156.3 149.7 166.4 158.3 157.1 155.8 161.6
Improvement in Indian economicsituation
148.4 160.9 143.3 176.7 160.6 153.0 145.0 169.4
Improvement in investment marketenvironment and atmosphere
143.5 151.6 150.0 165.0 163.6 156.1 155.0 161.3
Improvement in global economicenvironment
112.9 107.8 120.0 135.0 128.8 122.7 110.0 116.1
Increase in BSE Sensex 154.8 159.4 163.3 168.3 165.2 156.1 165.0 179.0
Appreciation in investment
portfolio 162.9 178.1 156.7 170.0 157.6 166.7 187.5 171.0
Change in amount of investments 175.8 179.7 165.0 183.3 174.2 187.9 172.5 172.6
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Indices by city June 2010 (Wave IV)
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June 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad AhmedabadRetail Confidence Index 155.6 152.7 148.9 158.9 146.8 143.6 129.0 158.9
Improvement in Indian economicsituation
156.3 155.5 161.5 165.4 143.8 149.5 157.8 165.4
Improvement in investment marketenvironment and atmosphere
156.3 157.6 152.5 162.2 155.0 144.3 137.3 162.2
Improvement in global economicenvironment
149.5 148.8 143.4 155.0 147.5 133.5 118.8 155.0
Increase in BSE Sensex 160.4 150.2 150.5 156.7 151.0 144.3 144.0 156.7
Appreciation in investmentportfolio
153.6 150.2 146.3 159 147.3 144.1 105.8 159.0
Change in amount of investments 157.5 153.7 139.5 155.2 136.6 145.8 110.8 155.2
June 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
IFA Confidence Index 143.0 142.5 143.6 145.8 141.7 135.2 134.4 138.3
Improvement in Indian economicsituation
150.0 145.0 148.3 148.4 159.4 162.9 165.0 160.0
Improvement in investment marketenvironment and atmosphere
146.8 147.5 140.0 148.4 148.4 145.2 145.0 145.0
Improvement in global economicenvironment
106.5 113.8 96.7 106.3 142.2 143.5 135.0 141.7
Increase in BSE Sensex 143.5 138.8 146.7 148.4 98.4 100.0 95.0 95.0
Appreciation in investment
portfolio 151.6 147.5 155.0 151.6 148.4 135.5 130.0 138.3
Change in amount of investments 159.7 162.5 175.0 171.9 153.1 124.2 136.7 150.0
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Indices by city February 2010 (Wave III)
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February 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad AhmedabadRetail Confidence Index 148.5 161.7 137.2 166.2 150.5 152.9 101.5 155.7
Improvement in Indian economicsituation
154.8 165.5 137.0 176.4 151.9 158.3 136.9 169.8
Improvement in investment marketenvironment and atmosphere
147.6 158.5 143.9 164.2 149.0 156.4 110.4 174.5
Improvement in global economicenvironment
148.2 156.1 136.3 157.5 146.6 151.7 88.4 149.3
Increase in BSE Sensex 152.6 167.2 138.0 168.7 149.0 152.4 130.4 161.0
Appreciation in investmentportfolio
159.0 165.7 134.4 164.2 155.8 146.9 62.1 141.0
Change in amount of investments 128.9 157.2 133.5 166.4 150.5 151.7 80.7 138.8
February 2010
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
IFA Confidence Index 140.9 142.5 150.3 152.5 146.0 140.3 143.9 150.6
Improvement in Indian economicsituation
140.6 145.0 156.7 153.3 167.7 178.3 158.3 178.3
Improvement in investment marketenvironment and atmosphere
135.9 147.5 146.7 148.3 140.3 146.7 148.3 160.0
Improvement in global economicenvironment
129.7 113.8 125.0 121.7 150.0 136.7 143.3 155.0
Increase in BSE Sensex 137.5 138.8 148.3 153.3 129.0 110.0 123.3 121.7
Appreciation in investment
portfolio 148.4 147.5 153.3 156.7 137.1 138.3 145.0 141.7
Change in amount of investments 153.1 162.5 171.7 181.7 151.6 131.7 145.0 146.7
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J.P. Morgan Asset Management ValueNotes Investment Confidence Survey December 13th to December 26th, 2010
Indices by city September 2009 (Wave II)
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September 2009
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad AhmedabadRetail Confidence Index 145.7 148.9 141.2 163.6 157.2 143.6 130.3 130.5
Improvement in Indian economicsituation
152.0 154.7 146.4 169.7 159.2 146.8 140.9 133.4
Improvement in investment marketenvironment and atmosphere
141.7 151.2 140.8 161.2 160.4 141.6 131.5 135.1
Improvement in global economicenvironment
139.5 147.0 134.5 159.5 160.1 131.8 119.0 128.5
Increase in BSE Sensex 153.4 148.0 146.4 169.9 153.1 154.7 139.4 127.7
Appreciation in investmentportfolio
141.9 148.3 141.5 159.7 155.8 139.4 132.0 128.2
Change in amount of investments 141.2 144.1 137.4 161.4 154.3 147.0 119.0 130.0
September 2009
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
IFA Confidence Index 153.5 154.8 145.2 151.4 146.9 149.4 143.8 153.2
Improvement in Indian economicsituation
154.8 160.0 145.2 148.3 160.0 160.0 154.2 167.7
Improvement in investment marketenvironment and atmosphere
151.6 160.0 140.3 153.3 155.0 158.3 147.9 162.9
Improvement in global economicenvironment
127.4 134.4 133.9 126.7 143.3 145.0 158.3 162.9
Increase in BSE Sensex 161.3 155.6 141.9 148.3 123.3 123.3 129.2 116.1
Appreciation in investment
portfolio 162.9 163.3 154.8 156.7 145.0 158.3 125.0 159.7
Change in amount of investments 162.9 155.6 154.8 175.0 155.0 151.7 147.9 150.0
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Indices by city July 2009 (Wave I)
43
July 2009
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad AhmedabadRetail Confidence Index 139.7 142.5 144.6 160.2 131.7 149.6 98.1 137.2
Improvement in Indian economicsituation
144.0 149.0 149.5 166.2 131.1 154.6 102.7 137.9
Improvement in investment marketenvironment and atmosphere
140.7 145.0 146.0 157.7 134.5 152.1 101.7 136.0
Improvement in global economicenvironment
133.9 132.0 141.8 156.3 126.6 139.9 96.5 133.7
Increase in BSE Sensex 143.0 141.0 144.8 160.8 133.0 155.5 103.5 139.5
Appreciation in investmentportfolio
135.9 144.3 144.8 159.4 130.2 150.4 99.8 137.9
Change in amount of investments 140.5 144.0 140.8 160.8 134.5 145.0 84.3 138.3
July 2009
Delhi/NCR Mumbai Kolkata Chennai Bengaluru Pune Hyderabad Ahmedabad
IFA Confidence Index 139.7 142.5 144.6 160.2 131.7 149.6 98.1 137.2
Improvement in Indian economicsituation
144.0 149.0 149.5 166.2 131.1 154.6 102.7 137.9
Improvement in investment marketenvironment and atmosphere
140.7 145.0 146.0 157.7 134.5 152.1 101.7 136.0
Improvement in global economicenvironment
133.9 132.0 141.8 156.3 126.6 139.9 96.5 133.7
Increase in BSE Sensex 143.0 141.0 144.8 160.8 133.0 155.5 103.5 139.5
Appreciation in investment
portfolio 135.9 144.3 144.8 159.4 130.2 150.4 99.8 137.9
Change in amount of investments 140.5 144.0 140.8 160.8 134.5 145.0 84.3 138.3
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Indices Overall
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Jul 2009 Sep 2009 Feb 2010 Jun 2010 Sep 2010 Dec 2010
Retail 138.3 145.1 147.1 151.7 160.1 159.5
Advisor 136.0 151.7 145.9 135.4 144.1 147.2
Corporate 133.5 142.5 130.7 134.0 131.8 132.2
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Survey Methodology
Screeners to capture respondent profile
Retail: Gender, location, age, occupational status, sector of engagement, liquid assets, investment activity in the past year
Corporate: Treasury size, years of treasury experience and treasury activity in the past year
Advisors: Extent of distribution reach, location (for IFAs)
Six index questions to compute indices - respondents confidence, over the next six months
Improvement in the Indian economic situation, general Investment market environment and atmosphere, global economicsituation
BSE Sensex increasing from current levels
Prospect of self (retail and corporate) / clients (advisors) investment portfolio appreciating and
Increase / decrease in investments (self - retail and corporate, clients advisors)
Other questionsprimary source of investment information, new capital investment projects, types of financial advisory
services rendered, preferred investment destination, positive and negative economic indicators, likelihood of non-investmentincome increasing, and range BSE Sensex will trade at in June 2011.
Interviews - face-to-face, online and telephone with investors and advisors in Delhi / NCR,Kolkata, Ahmedabad, Mumbai, Pune, Hyderabad, Bengaluru and Chennai
current survey conducted between 13thDecember 26thDecember, 2010
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Index Construction Methodology
Each Index question assigned a point between 0 and 200
Extremely likely - 200 points
Somewhat likely 150 points
More or less the same as current 100 points
Somewhat unlikely 50 points
Extremely unlikely 0 points
All six Index questions carry equal weight
Sub indices computed for each Index question, weighted by number of responses
Average of the six sub indices is the overall Index for the category / segment / city
The Advisor Confidence Index equally weights the Bank Confidence Index, N/RDs Confidence Index and the
IFA Confidence Index
Three indices constructed in a similar manner from the six Index questions posed to all
indices at any point, can range from 0 to 200; 200 being the highest possible confidence
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Respondent Sample
- Retail, Corporate & Advisor
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Eligibility
Retail
Employees from media, advertising & marketing, PR, research and financial websites excluded Employees and immediate relatives of J.P. Morgan Asset Management and ValueNotes not eligible for participation
Investment experience > 2 years
Age >=22 and = INR 2 lakhs in wallet size
Invested in stocks, mutual funds, bonds, foreign currency, certificate of deposits, warrants or derivative products in the last year
Actively save for investments, whether regularly or once in a while
Corporate
Treasury size > =INR 10 lakhs
Treasury experience >= 2 years
Advisors
Distribute financial products
>= 2 years of experience in f inancial services
N/RDs with nation wide reach
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Retail respondent profile
1,671 retail investors from the selected cities surveyed
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Corporate respondent profile
Treasury size represents investments excluding strategic equity holdings and hedging investments
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Advisor respondent profile
Advisors include 20 banks, 21 National / Regional Distributors (N/RDs) and 254 IFAs from the selectedcities
Advisor sentiment equally weighted across the three categories
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Disclaimers / Risk Factors
Statutory details: Sponsor: JPMorgan Asset Management (Asia) Inc. Trustee: JPMorgan Mutual Fund India Private Limited, acompany incorporated under the Companies Act, 1956. Asset Management Company: JPMorgan Asset Management IndiaPrivate Limited, a company incorporated under the Companies Act, 1956. JPMorgan Mutual Fund has been established as a Trust
under the Indian Trusts Act, 1882, by JPMorgan Asset Management (Asia) Inc., liability restricted to initial contribution of Rs.1lakh.
Risk Factors / Disclaimers: Mutual fund investments are subject to market risks. Please read the Offer Document,Statement of Additional Information and Scheme Information Document carefully before investing.
The information contained herein is provided based on a public survey. Although we endeavour to ensure that the information is as
current and accurate as possible, errors do occasionally occur. Therefore, we cannot guarantee the accuracy and adequacy of theinformation. Readers should, wherever possible, verify the information before acting on it.
This information is based on our assumptions and interpretations of the survey conducted. No part of our compensation was, is , orwill be directly or indirectly related to the specific recommendations or views expressed herein. Be aware that our assumptions andinterpretations are partially based on our observation of participants past behavior. Do not base your actions on the material so
provided. These observations will change if different assumptions and interpretations are applied for the purpose of preparing this
survey report.
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Research Methodology
Retail investors, corporate investors and advisors were surveyed through a combination of face-to-face interviews, online surveys (through www.valuenotes.com) and
telephone interviews. The surveys were conducted in selected Indian cities -Delhi / NCR, Kolkata, Ahmedabad, Mumbai, Pune, Hyderabad, Bengaluru and Chennai. Thenumber of responses to each question is multiplied by the respective confidence-level point and these are aggregated at each Index question level. Subindices arecalculated for each of these six Index questions, which is the arithmetical mean of the aggregates. The arithmetical mean of the subindices forms the Overall ConfidenceIndex for that respondent category. The Advisor Confidence Index gives equal weights to the Bank Confidence Index, ND Confidence Index and the IFA Confidence Index toarrive at the overall advisor sentiment. The Confidence Index, at any given point can vary between 0 and 200. 200 denotes the highest level of confidence in improvementfrom current conditions, 100 denotes a neutral sentiment and 0 denotes an extremely negative outlook.
Accuracy or Adequacy of Information
The information contained herein is provided based on a public survey. Although we endeavour to ensure that the information is as current and accurate as possible, errorsdo occasionally occur. Therefore, we cannot guarantee the accuracy and adequacy of the information. Readers should, wherever possible, verify the information beforeacting on it.
Interpretations and assumptions which may differ from person to person
This information is based on our assumptions and interpretations of the survey conducted. No part of our compensation was, is, or will be directly or indirectly related to thespecific recommendations or views expressed herein. Be aware that our assumptions and interpretations are partially based on our observation of participants pastbehavior. Do not base your actions on the material so provided. These observations will change if different assumptions and interpretations are applied for the purpose ofpreparing this survey report.
Reproduction of material is prohibited unless approval is taken
Information provided in this survey report is with the intent that it be readily available for personal and public non-commercial use and may be reproduced, in part or in wholeand by any means, without charge or further permission from J. P. Morgan Asset Management. We only ask thatUsers exercise due diligence in ensuring the accuracy ofthe materials reproduced; J. P. Morgan Asset Management be identified as the source; and, the reproduction is not represented as an official version of the materialsreproduced, nor as having been made, in affiliation with or with the endorsement of J. P. Morgan Asset Management. Our Corporate logo may not be used for any purposewithout explicit authorization.
Reproduction of material included in this survey report, in whole or in part, for the purposes of commercial distribution is prohibited except with written permission from J. P.
Morgan Asset Management. Through the permission granting process, J. P. Morgan Asset Management helps ensure individuals/organizations wishing to reproducematerials for commercial purposes have access to the most accurate, up-to-date versions. To obtain permission to reproduce materials on this site for commercial purposes,please contact: HeadMarketing and Communications, JPMorgan Asset Management India Private Limited, Kalpataru Synergy, 3rdFloor, West Wing, SantacruzEast,Mumbai400 055 Tel: +91 22 6783 7202