Indiantelevision.com Team

(31 July 2006 8:00 pm)

MUMBAI: Starcom Worldwide, a part of the Starcom MediaVest Group, has released the India Investor Experience Survey, which attempts to measure and monitor the experience of retail investors with the broking community and other related issues.

The research was conceptualised by Starcom as part of its ongoing efforts to create new knowledge about consumer attitude and behaviour. Conducted electronically on nearly 7,000 respondents, it brings to the fore some fundamental issues that the broking community needs to pay serious attention to, informs an official release.

Some highlights from the survey include:

- 35 per cent [1 in 3] of the respondents feel they have been cheated by their broker.

- An alarming 60 per cent claim to know someone who has been cheated by a broker.

- 84 per cent of those who feel cheated themselves claim to also know a friend or relative who has met the same fate.

- Even a half of those who don't feel they have been cheated themselves, claim to know someone who has been.

- Many investors feel that brokers don't have client interest in mind, they make money whether the investor makes a gain or a loss.

- 66 per cent [3 in 5] of all respondents and over 80 per cent of those who feel cheated, are convinced that the broker's advice is not 'fair and unbiased'.

- There is general good news for online financial transactions: 70 per cent of all respondents feel safe transacting online.

- Out of those who actually claim to trade online, 13 per cent do not feel safe doing so.

Starcom MediaVest Group - South Asia CEO Ravi Kiran said, "We believe this study raises some very serious issues on the investor-broker relationship and how it's perceived. The findings should be viewed with maturity and forward mindedness. When consumers tell us how they feel, it's very valuable information."

"The fact that 35 per cent people feel cheated by a broker is a really large and worrisome issue. In fact, considering the fact that people are a little cautious admitting to being cheated and pointing fingers in public, the real number is likely to be higher. Perhaps it's time for the broking community to take some concerted action, to remove these negative perceptions from investors' mind."