Less than half of people in the UK describe themselves as confident investors, with a significant gender gap, according to a new survey by Aviva. Just over two-fifths (44%) of respondents said they feel confident investing, rising to more than half (57%) of men, compared with only 31% of women.
Belief in 'born investors' persists
The survey of 2,000 UK adults, conducted in April by Censuswide, found that six in 10 (61%) people believe some individuals are 'born investors' rather than acquiring investing as a learned skill. Nearly a third (32%) of investors said they only came to investing later in life through their own interest and curiosity.
Regret and desire to improve
More than two-fifths (42%) of investors said they would change how they managed their investments if they could go back in time, while over a fifth (23%) have made decisions they regret. Just over a fifth (21%) were encouraged by family to consider investing from a young age.
Encouragingly, two-thirds (66%) of people surveyed expressed interest in changing their attitude towards investing and building confidence. This desire peaked among 18 to 24-year-olds (87%), around double the proportion of people aged 55 and over (44%).
Expert advice
Alistair McQueen, head of savings and retirement at Aviva, said: 'It is easy to think investing is a talent you're born with, but in reality, confidence is learned over time. Many people only start to feel comfortable once they have tried it and realised that investing is more about steady habits than bold moves.'
'The positive signal from this research is how many people want to build their confidence. Starting small, keeping things simple and giving yourself time can go a long way towards turning curiosity into action,' he added.
Tips for building investing confidence
- Consider building a buffer first: Setting up a basic emergency fund helps avoid needing to cash in investments at short notice. Start with a small regular amount you won't miss to gradually build a habit.
- Keep it simple: Consider starting with a diversified investment so you are not relying on one company or sector for growth.
- Pick a timeframe: Investing is usually for money left untouched for the medium to long term – five years or more.
- Be wary of advice sources: Be cautious of promises of guaranteed returns or secret strategies. If it sounds too good to be true, it probably is.
