Only 44% of people are very confident with how much money they have.
Over half (51%) have not achieved what they wanted with their investments over the past five years.
The average holding period before changing or cashing in an investment is 2.6 years, half of what is recommended by experts.
Investors have excessively higher return expectations: they expect on average a very high 10.7% return per year over the next five years, while one in six expect at least a staggering 20% annual return on their total investment portfolio.
In the final three months of 2018, when the MSCI World index of global equities fell sharply, only 18% of people kept their investments the same, and a further 9% made changes to their portfolio but kept the risk profile the same.
Understanding personal behaviours and motivations when investing is important to help make the right decisions. People who invest are faced with countless decisions about which investments to choose, each with unique risks and potential rewards attached.
The Global Investor Survey 2019 explores the behaviours and attitudes of more than 25,000 people who invest from around the world.
Overall, the results show that, against a backdrop of market turbulence, people’s expectations for income and returns are continuing to rise.
Despite recognising that investment plans should be long term, the majority of investors alter their investments according to short-term market movements.
In April 2019, Schroders commissioned an independent online survey of over 25,000 people who invest from 32 locations around the globe. The locations included Australia, Brazil, Canada, China, France, Germany, India, Italy, Japan, the Netherlands, Spain, the UK and the US. This research defines “people” as those who will be investing at least €10,000 (or the equivalent) in the next 12 months and who have made changes to their investments within the last 10 years.