Households’ investment literacy: Bank of Russia’s survey
According to the Bank of Russia’s survey, most retail investors understand the relationship between risk and return, while 85% of respondents see the difference between investments and savings. However, 42% of survey participants mistakenly believe that the government insures private investments, whereas another 23% are not sure about it.
Over a third of respondents learnt how to invest by reading posts on relevant Telegram channels and social media pages, around the same number – having discussed the matter with friends, and another third – based on bloggers’ advice. The largest number of investors are planning to improve their knowledge on the subject in the next 12 months.
An average Russian investor in a million-plus city is a 31 to 45-year-old man with a university degree. The majority of respondents are working, with around a third of them being employees or specialists and every tenth running a business.
The survey also proposes an investment literacy index as a new way of assessing survey results. The index shows how wisely households invest their money, taking into account risks and potential returns. It will be calculated every three years and will help the Bank of Russia adjust investors’ attitudes through educational projects. Its basic measurement equalled 14.79 points out of 25.