Seven in ten investors globally are conflicted about the appropriate balance between risk and return. And U.S. investors have higher expectations than others, according to new research.
Natixis, a French corporate and investment bank, discloses these findings in its “2014 Global Survey of Individual Investors.” The report, in its 5th iteration, examines more than 5,000 investors across 14 countries to better understand their attitudes towards risks, expectations on returns, and perceptions about measuring performance. The survey also measures how investors benchmark performance and navigate markets.
The research indicates that, on average, investors say they need gains of 9 percent above inflation (9.5 percent in the U.S) every year to meet their financial goals. But few are prepared to take the risks necessary to achieve this return.
Indeed, 7 out of 10 respondents say that, if given a choice, they would favor safety over performance in investment options.