The ups and downs of the markets may have proven to be too much of a roller coaster ride for many young investors, finds a Sun Life survey.
Fifty-one per cent of millennials between 18 and 30 years old would rather experience less volatility even if it means passing on opportunities to earn higher returns.
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The report also found 44% of millennials classified themselves as somewhat or highly risk averse, and 44% described their investment approach as conservative.
A third of millennials have sold their investments to raise cash, with half saying fear of losing money was the trigger.
“They could potentially be putting their retirement savings in jeopardy by investing so conservatively,” said Sadiq S. Adatia, CIO of Sun Life Global Investments. “These are investors with a long time horizon who should consider taking on more risk for the potential to earn higher returns.”
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Forty-eight per cent of millennials said recent market volatility has led them to have more frequent conversations with their financial advisors – more than any other age group.
When asked what the most valuable piece of advice they received from their advisors, investors overall pointed to staying the course at 42%. This is in line with the 43% of advisors who said this was the most valuable advice they shared with clients.