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Alternative Market Briefing

Only 18% of investors stuck with their long term investment plan during last year's market turmoil

Monday, July 01, 2019

Laxman Pai, Opalesque Asia:

Only a fifth of investors held their nerve during 2018 stock market tumble, according to Schroders Global Investor Study.

The study said that 2018 was a tough year for investors with sharp falls in global stock markets testing the nerve of investors. New global research shows that only 18% of investors said they stuck with their investment plans during the volatile three-month period at the end of 2018.

The findings were part of Schroders Global Investor Study 2019 which measured the views of more than 25,000 investors across 32 countries.

According to the survey, a majority (70%) of investors said they made some changes to their portfolio risk profile during that period. Just over a third (35%) took more risk, the majority, 56%, moved into lower risk investments (36%) or cash (20%). 9% made changes to their portfolios but kept their risk profile the same.

But despite the tinkering, many investors expressed frustration with how their portfolio had performed.

More than half of investors (51%) said they have not achieved what they wanted with their investments over the past five years, and many attribute their own action or inaction as the main cause of this failure.

The uncertainty during the period in question was particularly acute. Global stocks suffered their worst quarterly fall in seven years at the end of 2018 amid global economic concerns, driven by a worsening trade war between the US and China.

The MSCI Worl......................

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