Risky investments are not as scary as they used to be—especially to young investors, according to Schroders, a multinational asset management company based in London.

Nearly half of young investors said they are more willing to take risks now than in the past, Schroders said in its “Global Investor Study 2021,” which included 23,000 investors worldwide. In fact, 44% of those age 18 to 37 agreed that taking more investment risks is OK now.

“Our research indicates that many people feel they now have to take on more risk in pursuit of returns given the current pandemic,” said Lesley-Ann Morgan, head of multi-asset strategy at Schroders, in a statement. “The challenging economic conditions that we have seen over the past year have likely played a part in this. Amid the low interest rate environment, riskier investment choices have unsurprisingly become more compelling, especially for younger investors.”

But she warned investors to look before they leap into risk in their efforts to find returns.

“As with any endeavor in life that involves taking on more risk, investing in riskier assets requires careful thought,” said Morgan in an email to Financial Advisor. “Evaluation about the impact it might have on your overall financial position, especially if you are close to retirement or cannot afford to lose a significant proportion, and the impact it could have on your mental health is important.”

But the current global economic uncertainty is making the search for returns more intense.

“I don’t think this is just about Covid,” Morgan said. “There are a number of factors at play here. Interest rates have been very low, and hence investment returns on some asset classes have not been very impressive, and so people have increased their risk tolerance in the hope of getting better returns. In addition, some have been ‘romanced’ by stories of some lucky investors becoming very wealthy as a result of taking on significant risk.”

But even if an investor knows what he or she is getting into, risky investments can take a toll. Sixty-eight percent of young investors said the performance of their investments has an impact on their mental health.

Currently, just under one-quarter of all investors are putting money into new ventures such as electric vehicles, biotech, new pharmaceutical funds, internet and tech stocks, and cryptocurrencies, the study showed. But one-third of investors said they will invest more in riskier assets going forward.

If investors want to take on more risk, Morgan advised them to look for professional advice first. Investors need to understand how much they can lose on an investment—not just how much they can make.

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