Higher prices and the pivot in interest rates force a significant majority of investors to change direction, a study finds.
The twin shocks of inflation and interest rates have made more than half of investors worldwide reappraise their investment strategies, according to a Schroders Global Investor Study 2022 released on 7 December that polled almost 24,000 people in 33 countries.
The more challenging outlook is also forcing 47 percent of them to start planning on saving more and spending less.
Diversified Appetite
While almost half or 46 percent are mulling whether to increase the amount of diversification in their portfolios, a majority, or 60 percent, believe that their investments are diversified enough to mitigate the impact of a significant market event.
Global investors are also more likely to believe that investing sustainably is key to driving long-term returns compared with their peers who rate themselves as less knowledgeable, the study found.
Advisors Wanted
Approximately 58 percent of investors find active funds more attractive than passive ones. To help them navigate the uncertainty, about 30 percent of investors plan to speak with a financial advisor.
However, investors who defined themselves as being more knowledgeable were more likely to seek an active manager's expertise than they were six months ago.
