An FCA poll showed that three-quarters of young high-risk investors believe that they will feel competitive when investing in high-risk commodities. As part of FCA’s new InvestSmart campaign, consumers are encouraged to make smarter financial choices.

The Financial Conduct Authority (FCA) has released new data to coincide with the start of its InvestSmart campaign to help new investors understand the dangers they may face.

Two-thirds (68%) of the respondents (1,000) said they felt a sense of competition when investing, and 76% of them compared it to gambling. Among those surveyed, long-term investments are not common.

Survey respondents indicated that they prefer stable returns to volatile investments, which usually require longer investment periods, although 60% of respondents said they prefer more stable returns.

Social media and hype

Due to social media and traditional media, high-risk investments have become more and more popular.Many individuals Have investment motives Recommendations from the media, social media, and others in an investment.

After the pandemic, more than 1 million British investors (6%) increased their investments or purchased high-risk investments (April to October 2020).

Fearing that new investors may obtain high-risk products that may not suit them or represent their risk tolerance, regulators have taken action.According to FCA’s financial life research, as it shows here, Most investors believe that they understand financial issues better than the general public.Therefore, these investors are unlikely to understand the lack of investor safety and the dangers facing their funds

Olympic BMX gold medalist Charlotte Worthington has partnered with FCA. When talking about high-risk activities, Charlotte emphasized the need for careful planning. Charlotte became the first woman to win the BMX freestyle gold medal at the Tokyo Olympics.

The Olympic BMX gold medalist Charlotte Worthington said:

“In order to reach this stage of my career, I invested a lot of time and energy, experienced ups and downs and hours of training, one trick at a time to get the basic skills right. Although high-risk efforts may not always go according to plan , But preparation and knowledge are the keys to minimizing risks.

Small risks that don’t always go according to plan are critical to gaining the necessary expertise for large projects at the right time.

The only time I took a big risk in investment was after a lot of investigation and preparation. “

For investors, the Financial Conduct Authority (FCA) is now launching a five-year, £11 million InvestSmart campaign. This promotion is aimed at those who have never invested or have just started investing. In order to attract these investors, the campaign will target them on social media and the Internet. The campaign did not succumb to the hype, but encouraged investors to check their risk tolerance and send them to the FCA’s website for information.

Is using a new strategy to contact people who may be interested in high-risk items so that they can better Understand the hazards And where to get help. We will use social media and the Internet to reach out to potential investors to ensure that novices are not deceived. We expect InvestSmart will make it easier to detect fraudsters and take action against them, thereby enhancing investor confidence.

Don’t believe the hype-warning from FCA

According to New York City regulators, young investors are turning to cryptocurrency, foreign exchange trading, and other high-risk projects due to the hot discussion on social media and the gambling excitement of trying to get rich quickly.

The regulator has now launched a £11 million campaign to educate novice investors about the dangers they face.

The warning was issued after a series of stock market transactions related to so-called “memetic stocks”, such as GameStop, which triggered the rise of cryptocurrencies.

Regulators also found that few respondents are willing to stay in the stock market for at least five years or even longer to withstand short-term fluctuations expected by the market.

According to the Financial Conduct Authority (FCA), new investors are accepting high-risk investments due to social media and news reports.

Young investors have proven to be easily influenced by financial and investment gurus on social media platforms such as Instagram and TikTok.

According to a recent study, people who buy foreign exchange or cryptocurrency (57% and 69%, respectively) mistakenly believe that they are regulated by the FCA. The lack of investor protection and the possibility of losing all funds means that they are unlikely to realize this.

This work aims to help novice investors avoid being “played” and will use the Internet and social media to contact them.

This year, it was discussed that anyone interested in investing in high-risk securities needs a training DVD or an online exam.

According to FCA, YouTube and social media have become more important sources of information for this generation of growing self-investors rather than mature media.

More and more people are wandering between gambling and investment.