Investor expectations have been dialled up by the market returns recently

Inflated expectations

Investor expectations have been dialled up by the market returns of recent years. Independent Financial Advisers will need to add perspective and gently talk those expectations down. The latest Schroder Global Investor Study revealed some fascinating, and somewhat disconcerting, results.
– Investors expected an average annualised return of 10.7% from their portfolios over the next five years
– The younger the client, the higher the expectation.
– With an ageing population, low inflation and poor productivity, returns are likely to be lower from here.