37% of Global Investors Plan to Increase High-Risk Investment Asset Allocation

Schroders Announces Results of the 3rd 'Global Investor Study 2021' Survey

[Asia Economy Reporter Minji Lee] Schroder Investment Management announced on the 23rd that investors' interest in high-risk investments has increased amid the unstable economic situation caused by the COVID-19 pandemic.

According to the results of the third survey of the 'Schroders Global Investor Study 2021' conducted among investors worldwide, 37% of all respondents and 35% of domestic investors said that even if lockdowns and travel restrictions implemented during the COVID-19 pandemic are eased, they would allocate more funds to 'high-risk investments.'

Investors who entered high-risk investments for the first time last year mainly invested in newly trending sectors. The sectors with the most new entrants last year were electric vehicle-related stocks and funds at 24%, biotech and pharmaceutical stocks or funds at 23%, and internet and technology-related stocks and funds at 22%. The proportion of respondents who started investing in virtual assets (cryptocurrencies) was also 22%.

Investors cited the low interest rates adjusted by central banks worldwide to stimulate the real economy after COVID-19 as the reason for considering high-risk investments. Among all respondents, 53% said they would invest in high-risk products to seek returns if interest rates were at 0% or negative. Fifty percent of domestic investors made the same choice. Under the same conditions, 33% of all respondents and 26% of domestic respondents said they would invest in cryptocurrencies.

In particular, younger age groups were more willing to take risks. Among those aged 18 to 37, 44% said they would invest 'a lot' or 'more' in high-risk investments. The proportion of respondents in the 18-37 age group who said they would invest in high-risk assets when interest rates are 0% or negative was the highest at 57%. The older generation aged 51 and above showed a relatively lower likelihood of engaging in high-risk investments to seek returns. A Schroder Investment Management official analyzed, "It appears that people who have experienced an unstable economic situation are willing to take more risks to seek returns by leveraging market volatility."

Meanwhile, this survey was conducted from March to May this year among more than 23,000 investors across 32 regions worldwide, including Korea, Europe, Asia, and the Americas. The survey targeted individuals planning to invest at least $10,000 (approximately 13.68 million KRW) within the next 12 months and who had made changes to their investment portfolios within the past 10 years.

This content was produced with the assistance of AI translation services.