Retail investors across the world may be in for a disappointment, hoping that lower-risk assets will land them with high returns in the year ahead, according to a survey by Schroders.
In its latest global investment survey, the asset management company found that retail investors were expecting "challenging" average returns of 12 percent over the next 12 months, but were looking to place only around one-fifth of their portfolios in high risk/return assets such as stocks.
"There is a very significant disconnect between their expectation of return and their attitude to risk," Massimo Tosato, executive vice chairman of Schroders, told CNBC early on Wednesday.
Schroders surveyed 20,000 retail—or private individual—investors across 28 countries and found that nearly half of their funds were signposted for low risk-return assets such as cash. Around one-third was seen being placed in medium-risk assets such as bonds.
The people surveyed were also biased towards short-term investing, with almost half preferring to invest with an up to two-year timeframe.