Schroders explores how investor behavior often contradicts stated long term goals, highlighting gaps between expectations, emotions, and actual decisions. Despite recognizing the need for discipline, many investors trade frequently and expect high returns, with rising expectations even amid volatility, creating a disconnect that can undermine outcomes.
Schroders Global Investor Study – Investor Behaviour: Do People Have Control of Their Personal Finances?
Schroders
Research
19 Pages
Key Takeaways
Unrealistic Return Expectations: Investors expect ~10.2% annual returns globally, well above historical norms closer to 4–6%, increasing the likelihood of disappointment and poor allocation decisions.
Frequent Portfolio Changes: Over 77% of investors made changes within 12 months, despite most acknowledging investing should be long term, reinforcing behavior-driven performance drag.
Emotion Driven Decisions: Around 48% hold excess cash due to fear, while 57% simultaneously view uncertainty as opportunity, showing conflicting instincts impacting portfolio construction.
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