Schroders survey suggests Southeast Asian investors eyeing riskier assets

RiskChallenging economic conditions as a result of the pandemic and a low interest rate environment have led Southeast Asian retail investors to explore riskier investments, suggests a recent survey published by Schroders. According Schroders annual survey of retail investors, 40% of those from Southeast Asia were more willing to allocate to riskier assets, compared to a global average of 37%. When presented with a scenario of zero or negative interest rates, 56% of Southeast Asian respondents were willing to make riskier investments in niche sectors to generate better returns, compared to a global average of 53%. There was also much greater willingness to invest in high-risk growth cryptocurrencies in the same scenario, 46% of Southeast Asians compared to just 33% globally. “Our research indicates that many people feel they now have to take on more risk in pursuit of returns given the current pandemic,” said Lesley-Ann Morgan, head of multi-asset strategy at Schroders. Investors have also been spurred into looking at a broader range of asset classes, said Morgan. However, she also urged some caution. “Overall, these findings demonstrate that the proportion of investors open to embracing greater risk has increased, but with 68% of Southeast Asian investors (versus 63% globally) stating that the performance of their investments also has an impact on their mental health, they should ensure that risk is approached judiciously.” The survey canvassed the views of 24,000 people from 33 countries including Thailand, Indonesia, Malaysia and Singapore. © 2021 funds global asia

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