Three-quarters of younger investors who invest in high-risk products such as cryptocurrencies say they are driven by competition with friends, family, acquaintances and their own past investments.
More than two-thirds (68 per cent) likened placing their money in an investment to gambling.
The findings were released by the
The campaign asks investors to consider their appetite for risk and ignore hype, directing them to advice on the FCA’s website.
The
More than half (58 per cent) said hype on social media, from other people, and in the news encouraged them to purchase specific investments.
Only a fifth (21 per cent) were considering holding their most recent investment for more than a year, and less than one in 10 (8 per cent) for more than five years.
This is despite 60 per cent of those surveyed saying that they prefer more stable returns than investments that rise and fall dramatically.
Pandemic investment boost
More than one million
The regulator is concerned that new investors are increasingly accessing higher risk investments which may not be right for them, or reflect their risk tolerance.
The majority of those who had purchased forex (foreign exchange) or cryptocurrency (57 per cent and 69 per cent respectively) investments incorrectly believed these to be regulated by the
The
She said: “BMX is about big risk, and big reward – but it has taken a lot of preparation to get to this point, with highs and lows and hours of training to get the basics right one trick at a time. Anything high risk might not always go to plan, it’s about being prepared and minimising your risks through research and information.
“For example, my first run at the Tokyo Olympic Games didn’t quite go to plan, but because I had prepared properly I was able to get it right in the next run. It’s all about the smaller calculated risks in practice that don’t always go to plan, to gain the right experience to pull off something bigger at the right time.
“When it comes to investments, I would only take on high risks if I felt like I’d done enough research and I was properly prepared.”
Consumer investment strategy
The campaign is part of the FCA’s consumer investments’ strategy, which was launched in September. This aims to give consumers the confidence to invest, supported by a high-quality, affordable, advice market leading to fewer people being scammed or persuaded to invest in products which are too risky for their needs.
“With our
“We will be targeting people online and through social media, helping ensure inexperienced investors don’t get played. Together with a more assertive approach to finding and taking action against scammers, we hope
The post 'Ignore hype and look at risk',
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