Survey reveals investor risk appetite on the rise
25 March 2018
Risk appetite is on the rise as a large percentage of investors consider themselves to be off track to meet their financial goals, new research has shown.
The survey of 1,102 UK-based retail investors by online investment platform SyndicateRoom found 48% did not feel they are on track to reach their goals, with this number rising to 53% among millennial investors.
In order to offset lower then required returns, over a third (35%) of investors surveyed said they had increased their appetite to risk over the last 12 months. In addition, 68% said they would take on riskier investments if it increased their chances of strong returns. For millennial investors, this number was as high as 88%.
Goncalo de Vasconcelos, CEO and co-founder of SyndicateRoom (pictured), said: “The low-yield economic environment is having serious effects on the nation’s ability to reach its financial goals. It’s deeply worrying that increasing numbers of investors are failing to see the returns they expected – and with millennials suffering most, the wealth creation of a whole generation is at stake.”
Start-ups remain the popular choice for those seeking high risk, high return investments, with one in 10 investors already invested in the asset class. Two-thirds of investors felt a diversified portfolio of early-stage equities would help them achieve their financial goals in the long term. A quarter (24%) said their investment in start-ups had outperformed expectations and two thirds (67%) expect higher returns next year.
On average, surveyed investors said they would move 12% of their investable portfolio to early-stage equities if they had better information and access to the opportunities available, with both cited as the biggest barriers preventing investors from accessing this asset class.
Vasconcelos added: “With a diversified portfolio of early-stage equities recognised as one of the avenues helping investors meet their financial goals, I call upon the whole of the industry to tear down the barriers.”
Despite much uncertainty surrounding Brexit, the survey found that the political landscape had not affected investment appetite. Over half (59%) said it will not change how they invest over the next 12 months. Almost a quarter (22%) of investors, and nearly half of milliennials (49%) said they are now more likely to invest.
ATEB Consulting’s Steve Bailey examines why and how Paraplanners should consider a workplace pension in a pension transfer recommendation. Firms involved with...
Fund data and technology company FE fundinfo has acquired cashflow planning provider CashCalc, adding the cashflow planning capability to its suite...
The majority of paraplanners (58%) find suitability report writing software a useful tool but only if used in tandem...