How would you define a typical Mutual Fund investor of India? Results show that he (not she as 92% of investors in India are male) is an average 45 year old; fickle minded about investments. This is also the average age of the US investor, so what is the problem, if any? Well, there IS a problem because the average age in India is more than a decade less than that of the US! While the average Indian age is 30 years, that of the US is 45! India is a young country and 50% of Indians are below 35 years of age.
BMW, hi-fi gadgets (that more often than not includes costly mobile phones), designer clothes and accessories, and buying property in “rich” areas – all these are the rule of the day for the Indian youth. Obvious with so much to spend on they have very little to save and hence the delay in investments. Moreover, the sense of “responsibility” seems to seep into the Indian male ONLY post-marriage. The question of duty towards parents in one’s bachelor days is best left unanswered.
Another reason for the delay in investing is because only by his mid-forties/early-fifties is he free of all debts and loan repayments.
In addition, the average tenure of the US Mutual Fund investor is five years, while that of India has dropped from eighteen months to less than a year! Would you believe that in the US, 13% of investors have an average tenure of ten or more years, 27% of 5-9 years, 15% of 3-4 years, and 26% for 1-2 years?
India is known as a land of mysteries and so is the Indian Mutual Fund Investor.