A significant number of respondents also showed an appetite for relatively riskier products, such as funds investing in the banking sector and mid-cap funds.
“We construe this as an early sign of a set of investors desiring products apart from those normally pitched to them,” the Cerulli report said.
“A few Indian fund selectors want fund houses to come up with products that can beat market volatility or offer tax efficiency. True multi-asset products, which allocate across different asset categories, rather than balanced funds, which typically follow an equity-to-fixed-income allocation of 60:40, could be explored.
“Other product ideas that could be considered include smart beta and retirement products, as well as products based on environmental, social, and governance criteria.”
One in five retail investors are willing to explore investments in exchange-traded funds (ETFs), after the encouraging response to a follow-on offer earlier this year of the Reliance CPSE ETF in the region.
However, fund managers should take note of the different risk profiles of the investors, ranging from novices to the wealthy, while offering innovative products.
Further, more detailed information is contained in The Cerulli Edge – Asian Monthly Product Trends Edition, September 2017 issue.