Invest
Global market falls haven’t tamed unrealistic investor expectations
A low growth and low interest rate environment apparently hasn’t put off investors, who are displaying high expectations of their portfolios that are arguably difficult to achieve.
Global market falls haven’t tamed unrealistic investor expectations
A low growth and low interest rate environment apparently hasn’t put off investors, who are displaying high expectations of their portfolios that are arguably difficult to achieve.
The latest Schroders Global Investor Study said high expectations of investors observed the world over “may indicate why over half of investors globally (51 per cent) stated they had not achieved what they wanted with their investments over the past five years”.
Geographically, North and South American investors indicated the highest annual return expectations at 12.4 per cent on average, compared with 10.9 per cent for Australian investors and 9.0 per cent for European investors.
Over 25,000 investors from 32 locations worldwide were surveyed for the study, which showed that around one in six investors globally are expecting at least a 20 per cent annual return on their investments.
“This is despite major stock markets – such as the S&P and FTSE 100 – all experiencing net falls during the previous year,” Schroders reported.
It noted that the average annual return of the S&P 500 since its inception in 1957 is less than 8 per cent.
The Australian statistics derived from the survey showed that domestic investors have reported a desired income of 11.5 per cent on average from their investments over the next year, but expect just 11 per cent, not taking into account cash savings or properties.
But in good news for Australian investors, especially for those expecting higher returns, nestegg recently reported that the ASX Accumulation All Ordinaries Index has provided investors with an 11.4 per cent annualised return since 31 December 1979.
In Australia, desired income and expectations are also influenced by age, with Millennials desiring income of 12.9 per cent, versus Generation X’s hope for 10.8 per cent.
Baby Boomers reported an average expectation of 9.2 per cent, while investors who are 71 years-plus expect to receive 7.7 per cent in income generated through their portfolio.
About the author
About the author
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
Stock market
The US election created a ‘goldilocks scenario’ for financial markets
As the votes continue and the results are collated, the US election is increasingly likely to create a “goldilocks scenario”, an industry expert has said. ...Read more
Stock market
How a Democrats sweep could benefit the Australian market
As Americans go to the polls, a Biden victory could help Australia’s sharemarket, an investment bank has revealed. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Australia’s October stock picks revealed
Australian retail investors piled predominantly into high-growth industries such as electric vehicles stocks, cloud computing and recent third quarter IPOs during the month of October, new research ha...Read more
Stock market
The US election created a ‘goldilocks scenario’ for financial markets
As the votes continue and the results are collated, the US election is increasingly likely to create a “goldilocks scenario”, an industry expert has said. ...Read more
Stock market
How a Democrats sweep could benefit the Australian market
As Americans go to the polls, a Biden victory could help Australia’s sharemarket, an investment bank has revealed. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
