The average return expectations for investors in the region over the next five years is at 11.7%, which is tied with investors in the Americas.
Globally, investors expect an average annual return of 10.2%, despite the MSCI World Index returning 7.2% annually over the last 30 years.
| Region |
Return expectations |
| Global |
10.2% |
| Europe |
8.7% |
| Asia |
11.7% |
| Americas |
11.7% |
| Other |
10.8% |
Source: Schroders
“These high return expectations may leave some investors disappointed or result in them failing to meet their financial goals, such as saving for a pension,” Sasha Miller, head of market intelligence at Schroders, said in a statement highlighting the results of the survey, which included 22,000 respondents globally.
Survey findings also show that Asia has the largest percentage of investors expecting at least returns of 10%. There were around 6,300 investors from the region that participated in the survey.
Source: Schroders
At the country level, Indonesia had the highest return expectations, with 39% of investors expecting returns of at least 20%, followed by Thailand (32%) and India (23%).
Source: Schroders
Emotionally driven
The study also showed that emotion plays a significant role in financial decisions. When asked to rate on a scale from 0 (emotion plays no influence at all) to 10 (emotion is the only influence), the Americas rated the highest on average (7.0), followed by Asia (6.8) and Europe (6.2).
Asia is home to those both the most and least influenced by emotions when it comes to money. At one end is Indonesia, with an average of 8.1 and at the other is Japan, with an average rate of 5.0.
