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Investment and financial risk management

How does your attitude to risk affect the decisions you make when it comes to investing and major life decisions?

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Topic: Investing

We spoke to a thousand UK consumers to learn a bit more about their attitudes to investment, risk and major life decisions. So what did they tell us?

The big question – ‘What if’?

When reviewing life decisions...

30% of people regret taking too few risks, increasing to 37% for 18-34 year olds.

Behavioural Finance Theory: Risk Aversion
Investors are more motivated by fear of loss than the thrill of gain. This can often lead people to act irrationally when it comes to managing their money.

Worries about taking risk

8%

prefer stocks and
shares ISAs

36%

prefer savings
accounts

55%

associated investing
with high risk

39%

thought it was
complicated

  • 8%

    prefer stocks and
    shares ISAs

  • 36%

    prefer savings
    accounts

  • 55%

    associated investing
    with high risk

  • 39%

    thought it was
    complicated

Benefits of taking risks

  • 49%

    have been able to put aside more for a rainy day

  • 38%

    have used it to make home improvements

  • 30%

    have been able to buy a house earlier

  • 28%

    have been able to take retirement earlier

  • 25%

    were able to pay off long term debts in a shorter period of time

Managing risk

Investing can be risky and you can lose all or some of your money but there are also ways that you can manage that risk effectively:

  • Diversification

  • Rebalancing

  • Asset Allocation

Learn more about managing investment risks

Find out more

“At Click & Invest we believe more needs to be done to educate potential investors about the benefits of investing so that it doesn’t always feel like a giant leap and is an educated decision. We are passionate about empowering people to make these decisions and to begin improving their financial futures.”

— Jane Warren, CEO of Click & Invest

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