Knowledge is key to investing, but who should provide investors with the knowledge? Southeast Asian investors think that financial providers should be the ones doing so, according to a survey by Schroders.
Schroders’ Global Investor Study 2022 survey found that investors in Southeast Asia see financial providers (61% vs 51% globally) as the ones responsible for ensuring that people have sufficient levels of knowledge on personal financial matters.
Nearly half of Southeast Asian investors also believe that independent financial advisers, governments and regulators, and educational institutions have a role to play in this regard.
A difference can also be observed, in that respondents from Southeast Asia think that 31% of people themselves are responsible for having sufficient knowledge of personal financial matters, compared to 24% globally.
However, Schroders writes that “despite the positive intentions, a gap remains in investors who feel genuinely empowered to make the right investment decisions for their future.”
The survey notes that 79% of self-purported “expert” Singapore investors feel that they have sufficient knowledge to feel confident in making investment decisions for their financial future, while only 20% of “beginner” investors" in the country feel knowledgeable enough to do so.
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The Schroders survey classifies investors by their self-purported knowledge of whether they are “beginner”, “intermediate or “expert” investors.
Across Southeast Asia, climate issues are seen as Southeast Asia"s most important engagement priorities, with almost one-third (31%) of respondents indicating so. This is in line with most countries surveyed at 32%.
Natural capital and biodiversity also ranked second in Southeast Asia, demonstrating the significance of environment-related issues.
See also: Rich Chinese splashing out on luxury have yet to invest big in Singapore
Personal principles
Schroders also found that self-purported “expert” investors in Singapore are more likely to consider their personal principles as “very important” to them when investing.
63% of “expert” Singapore investors indicated this, compared to 58% in Southeast Asia and 55% globally.
Across the age spectrum, younger investors in Singapore, specifically, were found to strongly prioritise their principles and values when making investment decisions. 71% of investors in Singapore belonging to the 18-37 and 38-50 age brackets indicated as such.
This is in contrast to the global average, which showed that investors aged 71 and above were the largest segment (76%) who strongly prioritise their principles and values when making investment decisions.
