‘93% investors rely on market news for trade decisions’
Market news has emerged as an important component when it comes to stock-picking with more than 93 per cent investors relying on them for investing, a survey by Reliance Securities said on Thursday. Reliance Securities, the broking and distribution arm of Reliance Capital, has unveiled its first retail investor survey which was conducted to outline investor preference and understand options considered by retail investors while making their investment decisions.
“Market news emerged as a very important component when it comes to stock-picking with more than 93 per cent respondents saying they rely on market news for investing. Close to 66 per cent considered it to be highly important factor for decision making,” the survey said.
It said 70 per cent retail investors sought information from multiple sources for making their decisions, out of which 68 per cent look for two or more resources for the same. “The survey clearly states that retail investors would like to look at multiple sources - including brokerage reports and news -- for information before making any investment decision.
“This creates a space for new intelligent platforms that can aggregate information from multiple sources and provide them to these investors for better investing decisions,” said Reliance Capital CEO (Broking & Distribution Business) B Gopkumar. More than 80 per cent retail investors preferred to check stock recommendations from multiple broking houses before investing and 35 per cent feel it’s highly useful to look for multiple opinions.
Given the opportunity, 95 per cent investors are ready to embrace technology that helps them not only monitor news on their current portfolio but also help them decipher past trading patterns to enable better decision making in future with 75 per cent respondents saying it is highly important to track the same for better future profits.
“An interesting trend that came up was that investors would like to see their own trading trends in the past to make investing decisions. Usually, the preference is on analyzing market trends and particular stock trends for investing but when given an option for evaluating their own trends of investing, a majority of these respondents felt that this would be also useful to identify gaps and help them invest better,” Gopkumar said.