According to a survey carried out by Ernst & Young (EY), Europe’s retail investors have a lower understanding of investment products than their counterparts in the US and Asia.
The survey, covering 42 managers representing 30% of regulated funds, including Europe’s Ucits funds, concludes that this presents a major challenge for managers’ growth aspirations.
Michael Fergusson, regulated funds leader at EY, believes that social media might play a decisive role in helping to develop investor knowledge and brand and product awareness among the retail investor audience.
However, he warns: “Social media may help, but it is not going to solve the entire problem of how engaged and well-informed European retail investors are”.
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