New Delhi, Dec 16 (UNI) Government and public sector employees who were earlier reluctant to invest in the capital market are shunnig their mindsets, with 58 per cent choosing stocks and mutual funds as preferred investment instruments, said a study.
In a Survey conducted by industry body Assocham on 'Changing Investment Patterns of government employees, 300 of the 510 employees who offered their latest investment modes, indicated their savings first preference in shares and various schemes promoted by private and state owned mutual funds.
Releasing the Survey, Assocham President Venugopal N Dhoot said that despite stocks market's volatile nature, element of risk taking is now getting into government employees' psyche as a result of which domestic capital markets are attracting protected lot of government employees also.
As a result of massive investment in the country, stocks and infrastructure sector have also lured the government employees and motivate them to show a tilt towards stocks and mutual funds against traditional channels of investments in post offices, banks and other fixed deposit schemes promoted by governments, the survey said.
The study observed that the major factors for government employees to enter into stock markets is the easy availability of expert advisory services in the country which mitigates risks of losses.
According to estimates, with an investment of about Rs50,000 - 1,00,000 in share markets, investors are conveniently multiplying their incomes to over Rs three to four lakhs supported by booming 20,000 sensex mark.
Over 42 per cent of the respondents are keen to invest in shares of infrastructure, real estate, IT, automobile companies as these sectors are giving them huge returns and growing with an unprecedented rate.
However, 32 per cent of government employees especially from central governments are still choosing traditional routes of investments in post offices and banks schemes as they are only eager to get safe returns, the survey said.
The recent announcement by Finance Ministry that investments in post office term deposits and senior citizens scheme with five-year maturity term will get tax benefits, has again reposed their faith in these schemes, it observed.
In regard to government employees investments in mutual funds, it has been witnessed that equity linked mutual fund schemes (growth oriented fund), infrastructure mutual funds and Systematic Investment Plans (SIPs) are gaining popularity.
It was also revealed that upper level employees in these Navratna employees like ONGC, NTPC, BHEL, IOC, are putting their huge sum of investments in stock markets especially through online trading.
On motive for investments, perception of 54 per cent of respondents has been for future principal and 38 per cent felt that their investment objectives were current principal. The remaining 8 per cent however, felt that their investment objectives were for other purposes.