New Delhi, July 21 (IANS)| UK-based financial services firm Vivesta has said in its latest report that Indian investors, especially Millennials, are increasing their participation in US markets for portfolio diversification. The Vivesta Investor Pulse Report June 2021 is based on aggregated data from retail investors across India who invest in fractional shares of US equities on its platform.
According to the report, Exchange Traded Fund (ETF) investing is more popular among mature Indian investors in the US markets. This is evident from the ETF, which holds about 13 percent of the overall assets under management (AUM) on Vivesta. The AUM in ETFs in Vivesta has grown by 325 per cent in the past six months, while the AUM in equities has grown by over 185 per cent in the same period, the report said. This is despite a sharp increase in interest from traders and young investors due to the meme stock phenomenon in the US.
According to the report, while for many Indian investors, US investments are synonymous with popular FAANG (Facebook, Apple, Amazon, Netflix, Google) stocks, these stocks make up only 17 percent of total stock investments on the platform. Vivesta said the ratio has trended downward since the beginning of last year, but remained stable in the second quarter. The top 10 stocks for Indian investors in Q2 2021 were Apple, Tesla, GameStop, Amazon, Microsoft, AMC Entertainment, Facebook, Netflix, Palantir Technology and NIO.
The new stocks that caught the interest of investors in Q2 were AMC, PLTR and COIN. GME was the third most traded stock on the platform by transaction volume, and the most popular stock traded by AUM. While the technology, EV and blockchain sectors are the most popular sectors by transaction volume. According to the report, the introduction of multi-currency accounts has opened up new avenues of investment for Indians. In the days since the multi-currency account went live, the platform has already seen clients fund alternative investment platforms such as EstateGuru, Peerberry, Crowdstore and Seeders in Europe.
The report also tracked the portfolios of Indian investors and found that Indian investors are allocating 10-20 per cent of their total portfolio in international stocks. The average account size on Winvesta has also increased from about $2000 in the middle of last year to about $4700 today. The average transaction size on the platform is $850, while the average size is much less than $120. The residents of metropolitan cities have shown keen interest in foreign investment. Bengaluru, Mumbai and Delhi make up about 40 per cent of the investor base.
In the second quarter, Vivesta saw an increase in female customers. The proportion of female investors, which was just 6 per cent at the end of the first quarter, has now risen sharply to over 10 per cent. The start-up capital for women in an investment account is on average 60 percent higher than that of their male counterparts.
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