– More than one in three regular savers put off investing in the past because there are too many funds to choose from
– 31.1% of investors say they would prefer a choice of less than 50 funds
– Two-thirds of investors say a guarantee to at least get back the money they invest into a fund is more important than maximising returns
More than 4.4 million regular savers have been put off investing because they find it hard to choose from the thousands of funds on offer, new research from Scottish Friendly reveals.
The data shows that more than one in three (35.7%) UK adults who regularly save £100 a month say they find the number of funds available confusing and that this has stopped them from investing in the past.
Nearly a third (31.1%) of investors would prefer a choice of fewer than 50 funds, according to the research, which is far fewer than the 2,000 plus funds available in the wider market.
The findings highlight how large swathes of the population are put off by the complexity of the investment industry.
Scottish Friendly’s research also highlights how risk adverse investors are in the current climate.
Two-thirds (65%) of those surveyed say that having a guarantee that they would get their money back is more important to them than maximising returns.
Kevin Brown, savings specialist at Scottish Friendly, said: “Many potential investors are telling us that too much choice can be off putting and confusing. There are thousands of funds on offer to UK investors at the moment, so it’s no surprise so many people feel confused. At the end of the day, how is someone who is new to investing meant to wade through all of these choices and put together their own portfolio?
“We don’t want to put potential investors off. That’s why our focus is on making investing straightforward and accessible to everyone. In the current climate, people are looking for alternatives for their cash and investing in an ISA could be one way to help towards securing a prosperous future for you and your family.”
With all stock market investments, your investment can go down as well as up, so you could get back less than you invested.