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Frequent Investing Checks May Undermine Young Investors’ Long-Term Returns

Frequent Investing Checks May Undermine Young Investors’ Long-Term Returns
Young investors may be hurting their long-term returns with this investing habit, here’s how to avoid it · livemint.com

Many young people check their investments often.

Some also buy or sell investments every week.

This information comes from a survey across six countries, not from India alone.

Paying attention to investments can help people understand them.

But reacting to every market change can make it harder to stick to a long-term plan.

Frequent trading can also add costs.

Young investors can review whether their investments still fit their goals without trading every time prices move.

The report says advisers can help people avoid choices driven by fear of missing out or overconfidence.

Key facts

Report source
CFA Institute
Survey size
More than 2,400 mass-affluent, high-net-worth, and very-high-net-worth investors
Markets surveyed
India, Canada, Singapore, the UAE, the UK, and the US
Weekly investment checks
63% of Gen Z and millennial investors checked investment values at least weekly
Weekly trading
46% of young investors traded at least weekly; 52% among young high- and very-high-net-worth investors
Daily market news
40% of young investors consumed market news daily
Guidance
The report says human advisers remain the most trusted source of investment guidance

Sources

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