The 2016 Bridgehouse Scholarship Program (BSP) revealed that 62.5% of young Canadians are risk-takers and 51% are rational risk-takers.
The BSP, which ran from May 2 to June 15 of this year, included submissions from more than 800 students between the ages of 18 and 22 from across Canada. Participants took an investor personality quiz and submitted an essay explaining what they learned about their investment personalities.
"Rational risk-taking, combined with a long-term investing horizon, is an ideal combination for successful investing," said Carol Lynde, President and COO of Bridgehouse Asset Managers
. "Young people have a long investing horizon. If they have a propensity for calculated risk, they can stay invested through the inevitable short-term ups and downs."
The BSP was conducted with the aim of highlighting the Know Your Client requirement that financial advisors must follow before taking on an investment program with any client. With the investor personality quiz, young Canadians were able to reflect on their investment and risk appetites.
“Knowing yourself first is an important component of the Know Your Client requirement,” said Lynde. “The Bridgehouse Scholarship Program was designed to help students get to know their potential strengths and weaknesses so that, when they start to invest, they can seek appropriate advice and support to invest successfully.”
Based on the results, 31.4% of participants fell into the “Strategist” category; 20.3% were in the “Thrill Seeker/Strategist” category; and 10.8% were in the “Thrill Seeker” category. Fewer than 9% self-identified as risk-averse.
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