We all know that retail investors are driven by past performance. Yet, for decades, personal finance writers, newspapers and influencers on social media have educated investors about the important role fees play and the dangers of performance chasing. Did these efforts bear fruit?
One thing that caches my eyes is the two different level of confidence in responses. When I see the confident answers(green bars), I can see the traditional biases around previous performance as a success metric. Moreover, the second and third ones are related to fees and relative performance. However, when I see the non-confident responses(blue bars), it is obvious that the criteria have been changed and more investors know that there might be other factors that are vital for investment, such as risk profile or objectives. I think it is associated with the investors' financial literacy, and the community should generate more simple and easy-to-use information to level up the social knowledge and educate the investors. Thank you for sharing this valuable data.
One thing that caches my eyes is the two different level of confidence in responses. When I see the confident answers(green bars), I can see the traditional biases around previous performance as a success metric. Moreover, the second and third ones are related to fees and relative performance. However, when I see the non-confident responses(blue bars), it is obvious that the criteria have been changed and more investors know that there might be other factors that are vital for investment, such as risk profile or objectives. I think it is associated with the investors' financial literacy, and the community should generate more simple and easy-to-use information to level up the social knowledge and educate the investors. Thank you for sharing this valuable data.