Only 6% have confidence in Sebi, 24% know it exists: IIEF survey

IIEF, in association with India posts, UTI Bank and the Kochi-based Geojit Securites had surveyed 1,832 individuals from 106 districts across the country. In view of the extremely small sample size, IIEF, however, said data does not represent India. Responding to the data, Sebi chairman G.N. Bajpai had said there was a need to bring financial literacy as the market regulator can only put in systems to prevent such happenings. Despite the problems in IDBI and IFCI, 60 per cent of them considered the bonds of these entities were safer than mutual funds. It said 31 per cent owned mutual funds units including that of UTI and 43 per cent of the respondents were satisfied with their mutual fund investments.

Ironically, according to the survey, 61 per cent did not know the current value of their portfolio while 41 per cent had never calculated the full value and of those who did, 28 per cent had done it annually, 25 per cent on monthly basis and six per cent calculated it weekly.

The IIEF survey said 13 per cent of the respondents felt that the NAV of mutual fund could never fall below Rs 10 and another 13 per cent perceived that all mutual fund investments were guaranteed by the government. On the insurance side, it said although 71 per cent of the respondents owned life insurance policy, only 12 per cent bought it as a savings product. Rather showing that people are unaware of alternative investment instruments, 57 per cent held that all deposits in nationalised banks were fully guaranteed by the government and 86 per cent were satisfied with the banking services.