Schroders explores how investor behavior often contradicts long-term investing principles, focusing on confidence gaps, unrealistic return expectations, and reactive decision-making. Despite aiming for long-term growth, investors frequently trade based on short-term moves, with average holding periods of just 2.6 years and expected returns near 10.7%.
Investor behaviour: Do People Have Control Of Their Personal Finances?
Schroders
Research
19 Pages
Key Takeaways
Short-Term Behavior Bias: Investors hold assets for just 2.6 years on average, far below the 5-year horizon typically recommended for long-term investing discipline.
Unrealistic Return Expectations: Investors expect about 10.7% annual returns while targeting 10.3% income, highlighting a narrow gap between desired and expected outcomes.
Low Financial Awareness Levels: Only 44% feel confident about their total investments, and 51% say they failed to meet goals over the past 5 years.
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