Around a third of investors say they feel “overwhelmed” when trying to make investment decisions.
A survey conducted last week by the British Columbia Securities Commission found that 39% of investors in the province don’t read their investment statements as it leads to anxiety.
"The BCSC has been looking into the barriers that keep people from doing what they should be doing when it comes to their investments," said Pamela McDonald, Director, Communications and Education at the BCSC. "We spoke to British Columbians in focus groups last year and learned anxiety is one of the main barriers they face when making investment decisions. We conducted this survey to quantify the problem and understand what would help investors overcome their anxiety."
What can you do to ease your clients’ anxiety?
The research suggests that education could be a key factor in reducing investor stress. Around a fifth of respondents felt that if they knew more about investing, they would be less anxious.
Investors would also benefit from understanding the jargon (16%) and the products that they hold (22%).
Investment fees are also concerning for many and the BCSC is launching the next phase of its awareness campaign this week to help investors better understand the costs.
"We know from previous research that many B.C. investors still don't know they pay fees, let alone how much they pay. We don't want anxiety to prevent investors from having important conversations with their investment advisors about fees and how they impact investments," said McDonald.
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