Institutional Investor Market Outlook - 2030
Institutional investors are organizations that pool money from various investors to further distribute among investment managers. Investment managers generally invest large sums in various portfolios of assets, shares, and securities to earn a higher return. It includes entities having higher creditworthiness and solvency positions such as insurance companies, banks, non-banking financial companies (NBFCs), financial institutions, private equity funds, and investment advisors. Highly specialized knowledge of the market and accessibility of analytical resources allow investors to improve returns and lower risks for their members.
COVID-19 Impact Analysis
- In the wake of the COVID-19 pandemic situation, investment market structures have huge uncertainty, which further tends to increase market risk in terms of declining business value and lower rate of returns during the health crisis.
- However, the institutional investor industry has been largely affected due to the outbreak of the COVID-19 pandemic leading to economic instability. Furthermore, due to the uncertainty underlying in companies’ profitability & investors ability to repay funds, nearly 80% of debt funds investors have executed multiple changes in their portfolio and withdrew their money from the market. Thus, the institutional investor market has been largely hit by the pandemic.
Top Impacting Factors
Rapid urbanization and increased awareness of technological advancements are driving the growth of the market. However, risk allocation with the security market is expected to hamper the growth of the market. Contrarily, surge in investments through FinTech by institutional investors is expected to create an immense opportunity for the market growth in the coming years.
Rise in investments through FinTech by institutional investor
Major institutional investors have reported using FinTech to serve clients and invest in the security market. In addition, the use of advance technologies, such as artificial intelligence and machine learning, is widely used for better accuracy and significant advancements in the security market. In addition, global investment in FinTech has expanded at a rate of 6.5% over the last five years. Goldman Sachs, Citi Group, and Santander have been cited as the most active investors among the large banks. These institutional investors are projected to offer profitable prospects for investments by various investors in the market.
Risk allocation with the security market
There are two kinds of risks associated with investing in the stock market such as systematic risks and unsystematic risks. Systematic risks affect every organization, such as wars, inflation, and time-related hazards while unsystematic risks usually has an impact on industry or a corporation such as policy changes, labor strikes, corruption, and management challenges. Therefore, risks associated with the security market are expected to hamper the market growth.
Key Benefits of the Report
- This study presents analytical depiction of the institutional investor market along with the current trends and future estimations to determine the imminent investment pockets.
- The report presents information related to key drivers, restraints, and opportunities along with detailed analysis of the market share.
- The current market is quantitatively analyzed to highlight the institutional investor market growth scenario.
- Porter’s five forces analysis illustrates the potency of buyers & suppliers in the market.
- The report provides a detailed market analysis depending on the present and future competitive intensity of the market.
Questions Answered in the Institutional Investor Market Research Report
- Which are the leading players active in the institutional investor market?
- What are the detailed impacts of COVID-19 on the market?
- What current trends will influence the market in the next few years?
- What are the driving factors, restraints, and opportunities in the market?
- What future projections would help in taking further strategic steps?
Institutional Investor Market Report Highlights
Aspects | Details |
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By Industry Vertical |
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By Region |
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Key Market Players | Citigroup Inc., Axis Capital., DBS Bank, Morgan Stanley, UBS Group, Goldman Sachs Group, Inc., JPMorgan Chase & Co., Credit Suisse Group, Deutsche Bank AG, Wells Fargo & Company, Bank of America Corporation |
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