FMA: New Zealanders underestimate investment risk and prefer lower risk investment options
Research conducted for the Financial Markets Authority (FMA) shows Kiwis are switched-on about straightforward, low-risk investment options. But when responding to questions about investments with more risk, people are far less confident.
The FMA ran the survey as part of its contribution to this year’s Money Week, running from 13 – 17 October. Money Week encourages New Zealanders to think about their personal financial situation.
The survey asked respondents to assign a risk-level to various investments, including shares, KiwiSaver funds, term deposits, bonds and residential property investment. People were also asked whether these investments came with a guarantee you would get all your money back.
81 per cent of respondents said term deposits were low risk and 73 per cent said KiwiSaver conservative funds were low risk.
Simone Robbers, FMA Head of Primary Markets and Investor Resources, said “People seem to understand that term deposits and fixed interest investments are lower risk investments but there was confusion around the levels of risk of growth focused investments.
“We want to help people become comfortable about discussing all kinds of investment products so they can make more informed decisions. It’s important to understand what level of risk is most suitable for you and the mix of investments that will help you reach your financial goals.”
Results of the survey can be found here
Source: FMA- FMA: New Zealanders underestimate investment risk and prefer lower risk investment options
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