FCA warns of risks facing new generation of DIY investors

Newer investors take greater risks

James Baxter-Derrington
clock • 4 min read

The Financial Conduct Authority (FCA) has warned younger and more inexperienced investors are taking on greater financial risk than their resilience.

Only 41% of self-directed investors with fewer than three years' experience believe losing some of the money they invest is a "genuine risk", according to a  report conducted with BritainThinks. This is despite almost two-thirds acknowledging a significant investment loss would have a "fundamental impact on their current or future lifestyle". These newer self-directed investors tend to be younger and more balanced by gender and ethnicity and lean more towards investment apps than traditional platforms. YouTube, social media, Reddit and podcasts play a much larger role in the investmen...

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