Claire Smith (left) and Sam Hallinan

The overwhelming majority of Australian investors are confident in their investing knowledge according to a survey conducted by Schroders.

The research found 80 per cent of respondents felt they have sufficient knowledge to feel confident in making investment decisions that affect their future, while 88 per cent of self-purported ‘expert/advanced’ investors feel they have the right knowledge for their financial future.

However, this drops to 40 per cent for ‘beginner/rudimentary’ investors.

Australian investors are currently expecting an average annual return of 10.41 per cent on their investment portfolios over the next five years, down from 10.56 per cent in 2021, and lower than the global expectation of 11.37 per cent.

This is also slightly lower than returns delivered over the past five years that have Australian investors have reported (10.69 per cent p.a.).

Whilst Australians are confident in their financial decision making, ongoing education is crucial but only 12 per cent believe it should be up to themselves.

However, more respondents (52 per cent) cited financial providers as having a greater role to play for education as opposed to financial advisers (35 per cent).

Schroders Australia chief executive Sam Hallinan said investors are taking on more of the responsibility when it comes to financial decision making, and predictably investors with high levels of investment knowledge feel the most empowered.

“As an industry we play a crucial role in ensuring investors have access to information that supports empowered decision-making – with investors’ highest expectations resting with financial providers and financial advisers,” he said.

The study also found investors are diversifying into asset classes previously seen off-limits including private equity, digital assets, art and wine.

Schroders alternatives director Claire Smith said the finding matches conversations they are having with advisers.

“The survey’s findings that an increasing number of individual investors are looking to invest in private assets to achieve diversification supports conversations we’re having with financial advisers and behaviour we’re seeing from advisers and their clients.”

Schroders’ flagship study surveyed over 23,000 people who invest from 33 locations globally, including 1000 Australian investors during February and April this year.

This research surveyed people who will invest at least €10,000 ($14,500) in the next 12 months and who have made changes to their investments within the last 10 years.