Survey: Global demand for income products highest in Asia

Added 21st May 2015

Survey: Global demand for income products highest in Asia

Nearly 94% of respondents in Asia and an equal number in the UAE showed interest in income generating products, according to the global investment trends survey.

On a global basis, the corresponding number was 87%.

"This is a trend that has been gathering momentum due to interest rates remaining low in many countries around the world," the firm said.

A majority of investors pointed to low bank interest rates (36%) as a factor driving the demand for income products. Other factors include the rising cost of living and economic and political instability in some countries.

"Some investors are looking for income to reinvest and grow their portfolios while others are seeking to supplement salaries or to support their pension and retirement."

The firm surveyed 20,000 retail investors across 28 countries. 

Confidence rising

The survey also found investors' confidence in markets has increased as the world economy continues to recover from the global financial crisis.  

About 91% of global respondents are confident their investments will grow over the next 12 months, with the average investor expecting a 12% return from their portfolio. By comparison, investors achieved a 10% return in 2014, the report said.

Despite optimistic expectations on returns, investors intend to hold less than one quarter of their investment portfolio in higher risk assets.

The average retail investor is looking to place only around 21% of their investment portfolio in high-risk, high-return assets such as equities.

About 45% of investment capital is likely to be in low-risk, low-return assets (such as cash) and 35% in medium-risk assets such as fixed income.

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