FCA warns of risks facing new generation of DIY investors

Newer investors take greater risks

James Baxter-Derrington
The regulator is concerned inexperienced investors are being tempted into high risk investments

The regulator is concerned inexperienced investors are being tempted into high risk investments

The Financial Conduct Authority (FCA) has warned younger and more inexperienced investors are taking on greater financial risk than their resilience.

Only 41% of self-directed investors with fewer than three years' experience believe losing some of the money they invest is a "genuine risk", according to a new report conducted with BritainThinks. This is despite almost two-thirds acknowledging a significant investment loss would have a "fundamental impact on their current or future lifestyle". These newer self-directed investors tend to be younger and more balanced by gender and ethnicity and lean more towards investment apps than traditional platforms. r/WallStreetBets and the rise of the amateur traders: 1990s repeat or the new ma...

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