Investors Still Have Unrealistic Income Expectations And Shorter Holding Periods: Infographic

Many investors expect high income from their investments but hold their investments for shorter periods according to a study by Schroders. For example, investors want to generate an income of 9.1% while the average equity market yield is just 3.1%. Similarly in terms of holding periods, the average holding period is just 3.2 years much less than the period recommended by asset managers.

Click to enlarge


Source: GLOBAL INVESTOR STUDY: Investment outcomes – Infographic, Schroders

Generally though investors want high returns (both income and capital gains) from equities, their patience for holding them for many years is too low. For example, in the US the average turnover of stocks was an astonishing 307% last year and an investor held stocks for just 17 weeks.

Leave a Reply

Your email address will not be published. Required fields are marked *