48.50% Can Bear the Loss in Order To Maximize Returns

Personal Risk Tolerance is a skill that not everyone can handle well. Besides, in today’s world, the Stock Market, Cryptocurrency, and Real Estate are the prime domains for investments. Moreover, the economy of any country is directly influenced by the number of investors it has. Similarly, investing in the right place is an art, it always carries a risk of losing.

Real Research launched a survey on Personal Risk Tolerance. Similarly, it inquired about which medium people like to invest in most? In addition, what is their investment philosophy? Moreover, what is the important factor that influences risk tolerance? Also, it asked respondents about their attitude toward risk tolerance in investment.

Highlights

• 75.04% are currently investing.
• Almost 80% of respondents are aware of the term risk tolerance.
• 30.67% have a moderate attitude toward investment.

21.02% Say They Are Investing in Real Estate

To start, the survey asked respondents if they are currently investing. On this, 75.04% said ‘yes’ and 24.96% said ‘no’. Furthermore, the survey asked what do respondents usually invest in. Answers are as follows: Cryptocurrencies (35.73%), Real Estate (21.02%), Stocks (12.57%). In addition, respondents voted for Gold (7.04%) and Art and Antiquities (2.90%).

Furthermore, the next question in the survey asked if respondents are aware of the term Personal Risk Tolerance. In response, 79.36% said ‘yes’ and 20.64% said ‘no’. Moreover, respondents shared their opinion on personal risk tolerance in detail.

The next question asked respondents about their investment attitude. Here, 34.46% said their attitude is very conservative, 15.45% said it is somewhat conservative, and 30.67% said it is moderate. Likewise, 9.06% said somewhat aggressive and 10.36% said ‘very aggressive’.

32.41% Are Concerned About Loss Along With Return on Investment

Furthermore, the respondents replied to the question of being comfortable with large declines in value if there is potential for a higher return. In reply, 35.92% said ‘strongly agree’, 29.77% said ‘agree’, and 23.48% said ‘neutral’. In contrast, 7.10% disagree and 3.73% strongly disagree.

Moving forward in the personal risk tolerance survey, respondents voted for the statement that best suits them. Likewise, 48.50% said ‘I am willing to bear the consequences, 32.41% said ‘I am concerned about losses along with the return’. Lastly, 19.08% said ‘I like to avoid losses completely’.

The next question asked about the investment philosophy of respondents. In reply, 45.56% said they feel comfortable with stable investments.  Also, 19.11% said they are willing to withstand some fluctuations. In addition, 12.47% said they are seeking potentially high investment returns. Similarly, 11.23% of respondents said they seek substantial investment returns.

40.55% Expect Their Income To Grow Substantially in the Coming Year

The next question in the survey asked about the expectations of respondents about their income in the coming years. In response, 40.55% expect it to grow substantially, 22.52% expect it to stay the same, and 24.12% expect it to grow moderately. Lastly, 6.42% expect a moderate decrease while 6.39% expect a substantial decrease.

Lastly, respondents voted for the most important factor that influences personal risk tolerance. Here, 32.89% chose ‘age’ and 15.19% chose ‘goals’. Moreover, 11.73% chose investor’s comfort level, 9.86% say portfolio size, and 9.75% said timeline.