Benefits of Working with a Financial Professional
Globally, those investors who work with a financial professional are more geographically diversified with their investments, had a more accurate view of past stock market performance and were more likely to identify themselves as being optimistic about reaching their financial goals (82%) than those who do not (76%).
"Navigating global markets can be complex and investors can benefit from working with a financial advisor to appropriately position their portfolios to meet their investment goals," said Guerrien. "These survey results underscore the importance of investor education, especially among younger investors, who have not experienced as many market cycles and whose attitudes may be especially influenced by more recent market volatility."
"Investors navigating global markets can also benefit from the resources and experience of a global asset manager," Guerrien added. "As for Brazil, whether Chilean investors are positive or undecided about investing there, having access to local expertise can be critical. Franklin Templeton has been investing in Brazil since the 1980s and today has an established Brazilian local asset management presence with equity, fixed income, and multimercado expertise."
Providing financial security for their families is top reason Chilean investors invest, followed by retirement and paying for education, according to the survey. Even among investors 55-65, only 36% say they invest primarily for their retirement.
Retirement was the top investment priority for investors globally, with about a third (31%) of investors selecting it as their top investment goal in 2013. The selection of retirement was highest in the United States and Canada (54%), while lowest among investors in Latin America (18%) and parts of Asia Pacific (29%). The top goal in those two regions is saving to purchase a new home (38% in Latin America and 31% in Asia Pacific). At 12%, Europe had the highest number of investors who indicated that saving for emergencies was their top goal.
For investors concerned about the perceived risks of global investing, having an experienced risk manager can be an important resource. Wylie Tollette, director of Performance Analysis and Investment Risk for Franklin Templeton Investments, said, "Many investors need to rethink risk and focus on the long term. Risk avoidance and risk management are two different things. Trying to avoid short-term risk and volatility entirely may expose investors to other kinds of risks, such as inflation and the impact of rising interest rates. These longer-term risks can negatively impact their ability to meet their financial goals."
Stocks, Precious Metals Lead Asset Class Expectations
Globally, stocks and precious metals were each selected by 21% of investors as the asset classes expected to perform best in 2013. However, those residing in developed markets generally have a more favorable outlook for equities, with Australia, Canada, Hong Kong, Japan, Singapore and the United States expecting stocks to be the top performing asset class this year.
As investors look further into the future, they expect real estate to outperform all other asset classes over a 10-year period, with the largest portion of investors (22%) seeing the greatest investment return in that asset class. Stocks and precious metals, each selected by 19% of investors globally, were not far behind.
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