Education and investment returns: correlation explored by Bank of Russia
Engineers and humanitarians are successful in asset management provided that they have experience in securities transactions.
Investors having a degree in economics and work experience at financial institutions earn the highest returns.
A research degree is also a characteristic of successful investors, especially among qualified ones.
These are the findings of the Bank of Russia’s behavioural assessment carried out as part of Moscow Exchange’s competition ‘The Best Investor’. In the course of the assessment, experts explored the correlation between a person’s education and results in investment. In addition to education, the study also took into account the effective criteria for receiving the qualified investor status.
According to the findings of the assessment, the most successful investors in the forward market are people who have knowledge in funding, capital raising, behavioural economics, and fundamental and technical analysis. The best results in the securities market are achieved by investors knowing the principles of risk management, ethics and professional standards.
As regards the qualification criteria, investors believe that the most important of them include work experience at financial institutions, securities trading amounts, and the receipt of an international certificate. That said, the value of assets has the weakest correlation with an investor’s success.
As a result of the study, the Bank of Russia has found out what requirements for receiving the qualified investor status may be reduced where a person has the necessary education background. The Bank of Russia plans to discuss possible revisions with market participants.