MFs Still to Get Popularity in Assam & Northeast: Survey

Kolkata/ Guwahati Feb 23 : Compared to other regions of the country, Mutual Funds have still not gained popularity as an investment vehicle in Assam and North-East, found a recent survey done by Bajaj Capital, India's one of the leading investment advisory and financial planning companies

According to the survey, a retail investor in Guwahati invests about 15 per cent of his income into investment products, the most preferred being life insurances which account for about 50 per cent of the investible surplus.

The survey also revealed that only about 15 to 20 per cent of the investors consult professional investment advisors or financial planners to plan their investments.

Majority of people continue to consult friends or relatives and end up allocating most of their surplus in one asset class rather than a healthy allocation across various asset classes.

The survey also found that investment instruments like high quality company fixed deposits or even safer instruments such as government bonds are preferred by investors of the region.

"The survey results present in itself an opportunity for high quality financial planning for investors in Guwahati, especially in the age group of 25 to 50," said Vinesh Menon, deputy CEO of Bajaj Capital, who was in Guwahati to inaugurate the companies second investment centre.

The company has now established a countrywide network of 150 offices across 85 cities in India.

Located on Bhatapara Road, Hatigaon Chariali in Guwahati, the office will be managed by a team of financial planners, each of whom is trained in need-based advisory solutions.

"Almost 75 per cent of the investor population in Guwahati prefers to put their money in life insurance schemes. We are hoping to reach out to them and provide them sound quality advice across multiple investment avenues including insurance plans and enabling goal based investment products in accordance with their financial needs," Menon said.

Commenting on the company's vision and expansion plans, Menon said the new investment centre in the city will ensure that more investors will now benefit from the company's 360 degree financial planning tool that will determine the most suited investment and insurance products to meet their future goals.

He added that the branch will soon offer demat and stock broking services for those who wish to participate in capital markets.