Investors Looking To Short-term


    More than half of investors look to short-term performance factors when making investment decisions, while nearly one-third mistakenly believe all investments carry the same overall level of risk, says a TIAA-CREF survey. And this focus on short-term financial performance and misunderstandings about the nature of investment risk may have an impact on American investors’ financial well-being, especially in the long-term effort to plan for retirement. It found 36 per cent of investors look to one-year performance as the most important indicator of an investment’s return, with an additional 16 per cent looking to quarterly performance as most important. Nearly half of investors have purchased a fund based on its performance during the previous year rather than looking at its performance over a longer-term investment horizon such as five or 10 years.