Friday May 20, 2022

A typical Czech investor is active and intelligent

A typical investor in mutual funds is economically active in the age of 30 and 50, with a stable family home and education, working in administration. I earn 20,000 crowns and more, own one car, rd travels and sports. And how does such a typical esk investor invest?

A study by GfK, the Institute for Market Research, showed some surprising tweaks, which can be attributed to the fact that the research was in the form of an online interview (a total of 327 interviews). Therefore, only investors using the Internet were involved.

One of the biggest surprises, which is probably influenced by the first environment in which the research took place, is the change of investor to individual groups of the fund. With a clear view, stock funds have won, with 58% of respondents investing in them. Money market funds in the second city with 35 percent will probably not surprise anyone. Less than 10% of investors owning hedge funds were further surprised. “Internet investors” probably do not belong among the conservative party that the stock fund fights. The main reason will be that equity funds make up your dynamic, not the main component of the portfolio and other funds then complement them depending on how the investor is exposed to risk (and whether the equity component is supplemented by hedge funds, money, bond funds, etc.).

Can I afford it

Many investors consider funds to be a safe tool, they are not the shares themselves and that is probably why the most common reasons for investing in them are families (50%), savings in the mountains (41%) or people (36%). Not surprisingly, the motivation that leads people to invest in the fund at all. Most of them are, of course, available disputes (42%), which is clearly related to previous grounds. And then follows dissatisfaction with the rate of return on other forms of investment (26%) and a discussion of pensions and pension reforms (23%). Payments for building savings, life insurance, inheritance or severance pay are in the background, these events do not only occur every day.

Experts are a hurry
The most important factor for where investors invest their pensions is the feeling that the invested funds are in the hands of professionals (32%). What is important is the good name of the company that distributes the funds (30%) or the court in the investment company (26%). Transparent additional fees, on the other hand, are not a reason to buy the fund (9%). On the contrary, the opacity of the offer products is the most frequent reason against investing in funds (19%), which is probably not a good first for a company’s investment with a wide range of different products. In simplicity, it is simple. Investors are also repelled by a difficult risk estimate (18%) and high management fees (10%).

The most popular source of information for Czech investors is the Internet (84%), which is not surprising given the form of research and it should be taken into account. Other sources of information are the titles of the media (43%), independent financial consultants (37%) and the banks themselves (34%). The final decision is then made by each investor (53%) or by agreement with a partner (36%). In the hands of the asset manager, virtually no one has decided to invest, and 28% of investors rely on the advice of the council. As to Jaroslav Jra from the GfK Prague agency, “although the Czechs and e-vesms are open to a number of friends and financial experts, they have finally decided to pay for themselves, resp. together with his partner. “

Long-term investments lead

Divided by debt, long-term investments lead to long-term investments of more than five years (41.1%), followed by a medium-term investment horizon of two to five years (36.6%). This is quite positive at first and shows that investors do not take investment as mere speculation. I also agree with the types of funds that investors prefer. As for awareness of the development of their investments, two-thirds of respondents monitor their investments at least once a month and more than a quarter (27%) even check the status of their funds at least once a week. “If these results are related to the fact that 41% of investors state that their investment horizon is longer than five years, their ‘hunger for information’ is somewhat surprising,” added Jra.

Although long-term investments are in the forefront of investors, a large number of them pay pensions to funds in the form of one-off investments (64%) and 21% of them go to increase their investment assets by regular investments. The vast majority of respondents have an amount deposited in the funds of up to EUR 10,000 (72%), 13% from EUR 10,000 to EUR 20,000 and 11% from EUR 20,000 to EUR 50,000.

Vtina investor (60%) is satisfied with his funds and is going to invest in the fund again in the future. Another 23% of respondents are satisfied, but in the future they will choose another form of investment. A total of 17% of investors were dissatisfied with their funds, of which 11% made their further decision to further develop their investment and 3% would be able to transfer their funds to another fund in the future.

The basis is family and health

The most important value in their lives is considered to be the investment, especially the family, resp. relationship (84%), health (74%) and the ability to make free decisions. On the contrary, the biggest threats are illness, financial hardship (loss of labor, poverty), death of loved ones, inability to secure a family and fear of wolves. “So this is undoubtedly a conservative target group,” explains Mr Jra.

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