Nearly 40% of 'mass affluent' investors, those with at least £30,000 to invest, feel confident en...
Nearly 40% of 'mass affluent' investors, those with at least £30,000 to invest, feel confident enough to manage their own investments, according to research conducted for HSBC.
However, the research revealed that that almost two-thirds of the mass affluent have their investments managed for them or rely on professional advice. Younger investors are more likely to feel confident enough to manage their own investments and the requirement for professional advice is strongest for people aged between 55 and 64 years old and the retired. It was found that a fifth of the mass affluent have no stockmarket-linked investments.
It was found that 46% of investors obtain information and advice from independent financial advisers (IFAs), 31% who rely on banks and other sources include friends or colleagues (29%) and the internet (14%).
Findings also showed that most people have serious, long-term investment goals in mind. 70% are planning for their retirement, 52% want to provide for their children, 40% are providing for their grandchildren and 19% are funding a child's education.
The cost of making a bad investment choice is thought to be highlighted by HSBC research. Over a five-year period to 1 March 2001, £50,000 in the best performing unit trust would have grown to £230,491, compared with £83,142 in the average unit trust. By contrast, £50,000 invested in the worst performing unit trust would have shrunk to £5,534.
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