* Technology, electric vehicles, and blockchain have been the most preferred sectors for Indian investors
Passive investment is gaining traction; QQQ, VTI, and ARKG are the top three favourite ETFs listed on US markets
UK headquartered leading Fintech platform, Winvesta, which enables investments in over 3500 US Stocks and ETFs, today launched its 'Winvesta Investor Pulse Report.' The report finds that Tesla, Nio, and Riot Blockchain are the top three most-bought US stocks by Indians.
'Winvesta Investor Pulse Report' is a nationwide study that encapsulates the investment behavior among Indians collected from investors on the Winvesta platform between the period 27th March 2020 and 20th March 2021. The investors are 18-70 years old, living in Tier 1 and 2 cities.
According to the study, 'Technology' stocks continue to be preferred by most Indians, followed by 'Electric Vehicles' and 'Blockchain' sectors. This clearly indicates how the latter two sectors have gained popularity among Indians in the last year.
Interestingly, passive investments are gaining interest among Indian investors, with about 25% investing in ETFs on the Winvesta platform. The majority of investors have invested in QQQ (Nasdaq 100) ETF, followed by VTI (Vanguard Total Stock Market Index), ARKG (ARK Genomic Revolution), SPY (S&P500), and ARKK (ARK Innovation). Geographical ETFs and ADRs make about 10% of the investments on Winvesta's platform.
Swastik Nigam, Founder & CEO, Winvesta, said, "While launching Winvesta, we observed a strong home bias among Indian investors, which disallows participation in global growth stories. Our objective behind starting Winvesta was to make Indian investors realize the importance of geographical diversification and facilitate seamless overseas investments. In a way, the pandemic was an eye-opener for many because when Indian markets were not performing well, investors realized the value of investing in overseas markets. We have received tremendous interest from Indian investors to invest in US stocks and ETFs. Today, an average account size of an investor on Winvesta's platform is about $5000, with an average transaction of about $800. Investors are aware of the benefits of a well-diversified portfolio, and going ahead, we are confident of gaining more traction from Indian investors."
Although for many Indian investors, US investing is synonymous with the popular FAANG stocks, today FAANGs make up only 17% of the total stock investments on Winvesta's platform. This ratio has been trending downwards since the beginning of last year as other high growth stocks like TSLA, NIO, and RIOT took the lead from the tech giants. Apple, Amazon, and Microsoft continue to be among the top 10 popular stocks on the platform.
"We have also seen a growing interest from the younger investors who are prolific consumers of many overseas brands and are beginning their investment journey with modest investment sizes. A large proportion of our clients are repeatedly remitting as well for systematic and opportunistic investments. With the recent strength in INR and also the financial year ending, we have also noticed increased remittance sizes as investors make use of this financial year's Liberalised Remittance Scheme (LRS) quota", said Prateek Jain, Co-founder Winvesta and further added, "Lately, we are seeing Indian investors getting bullish with passive investing and looking at investing in US ETFs which could give them exposure to innovative themes and markets beyond the USA."
Winvesta, which started its operations just two days after the national lockdown, currently has an investor base across India, with more than 60% of them being millennial (25-40years). The majority of the investors are male (94%). Delhi (NCR), Bengaluru, and Mumbai make up almost 25% of its client base, followed by Pune, Chennai, and Hyderabad. Nearly 45% of Winvesta's client base is from metropolitan cities.
Winvesta is a new-age fintech start-up offering Indians a platform to invest overseas. It is built by a team of finance professionals, each with over a decade of experience in global financial services. Their core belief is that diversification, consistency, and low transaction costs are the keys to build an efficient portfolio. Diversification for Indian investors has long been limited to domestic instruments. Investing overseas has been difficult and expensive. Winvesta is changing that by bringing global investing to the finger-tips of every Indian investor.