Risky Britain not rewarding enough for private investors
The grass always seems greener on the other side, and sometimes it can be, says popular investing website The Motley Fool at Fool.co.uk. But for 9 out of 10 private investors (96%), the grass is greener anywhere apart from the UK, according to new findings from a survey looking at private investor sentiment across some of the major global financial centres of the world.
The UK is almost as an unpopular as Japan for private investors
China and India are considered the most rewarding places to invest
Russia is perceived to be the most risky country to invest in
Four out of ten investors (42%) are set to invest in India, China and Brazil
Private investors in the UK have voted for India and China as the best places to invest after assessing the potential risks and the prospective rewards of a number of global markets. One in six (16%) give India the thumbs up, with China a close second for one in eight investors (13%). They reckon that the grass in India is not only the greenest but also more luscious and likely to stay that way for the next five years.
Investing in shares is never without risk. However, UK private investors are prepared to put their money into emerging markets in the belief that the possible rewards are likely to outweigh the latent risks.
As expected, the emerging markets are deemed to be some of the most risky. Russia is perceived by one in three investors (29%) to be the most perilous of the BRIC countries, with China a distant second for one in six investors (18%). India (11%) and Brazil (11%) are seen as the least risky of the four BRIC nations, but they are still thought to be three times more hazardous than the UK (4%).
India, China and Brazil are reckoned to be some of the best places to achieve better returns than the UK. Interestingly, Germany is also seen a rewarding place to invest. It is also seen as a low-risk market. Consequently, a combination of low risk and high rewards has catapulted Germany into the fourth most popular market for private investors.
David Kuo, Director at The Motley Fool – Fool.co.uk comments, “Private investors recognise that they need to embrace risk if they are to achieve a decent return on their investments.
“Investing in equities is one of the best ways to protect against inflation and achieve growth. It is also sensible to venture into pastures new to build a diversified portfolio. However, it is important to remember that all pastures need to be fertilized and watered regularly.
“There was a time when investing in overseas markets was the preserve of the rich, but today anyone can invest in overseas shares. There is a wealth of information available on many exotic markets, so tending to your portfolio should be seen as a pleasurable pastime rather than a grudging chore.”