Peermoon survey: most investors diversify their investments across different assets
Peermoon conducted a large-scale investor survey recently to find out investors’ current priorities and expectations when choosing investment types and tools. A similar survey was conducted in spring 2020, however, at that time many investors had more hesitations about investment opportunities and market stability due to pandemics.
This fall’s survey was conducted in various investor forums and groups on social networks. In total, more than 45 000 investors worldwide took a part in Peermoon’s survey.
This year’s survey compared to last year shows a significant increase in investor optimism to invest. Last year, almost half of those surveyed were hesitant about the stability and prospects of investment markets.
In our survey, we asked investors to indicate in what asset classes they invest in. The survey shows that to diversify the investment portfolio investors choose to invest in different asset classes.
Currently, the most popular asset classes are stocks, ETFs, projects on crowdfunding platforms, P2P loans, and cryptocurrencies. Most investors invest in 3-5 different asset classes.
Diversification is a key aspect of asset allocation across a range of different assets to reduce investment risk. The survey also shows that investors understand the importance of investment diversification very well.
Peermoon analytics note that a diversified portfolio helps balance volatility since no one asset will have an outsize impact. The main essence of diversification is reducing overall risk while increasing the potential for overall return, because some assets may perform well while others do poorly. The more investment portfolio is diversified, the better.