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Digital Wealth Management
Industry Trends – Risk Tolerance and Investor Demographic
Over one third of
American
households are
unwilling to take any
risk, but those
investing in mutual
funds and ETFs are
willing to take
average risk or more
for similar riskadjusted
return
Level of Investment Risk Willing to Take for Compensated Gain
Substantial Risk for
Substantial Gain
Above-Average Risk for
Above-Average Gain
Average Risk for
Average Gain
Below-Average Risk for
Below-Average Gain
Unwilling to Take Any
Risk
6% 6%
15%
35%
9%
35%
All US
Households
25%
49%
10%
10%
Mutual Fund-
Owning
Households
12%
37%
41%
6%
4%
ETF-Owning
Households
Primary Reason for Household Saving Changes with Age
Willingness to Take Above-Average Risk by Age Group (1)
24%
25%
23%
12%
64
Age of Head of Household
401(k) Plan Participants’ Allocations to Equities
32%
30%
22%
15%
21 - 29
30 - 39
40 - 44
45 - 54
55 - 64
9%
43%
38%
33%
23%
13%
2%
65%
19%
10%
4%
1%
0%
>0% - 20%
>20% - 40%
>40% - 60%
>60% - 80%
>80%
22%
18%
26%
13%
6%
15%
Home Purchase, For the
Family or Education
Retirement
Investors in Their 20s
Investors in Their 60s
Source: Investment Company Institute 2015 Fact Book
(1): Age is based on the age of the sole or co-decision maker for household saving and investing. This figure measures willingness to take investment risk for equivalent gain – for example,
willingness to take above-average or substantial risk for above-average or substantial gain
(2): Equities include equity funds, company stock and the equity portion of balanced funds. Funds include mutual funds, bank collective trusts, life insurance separate accounts and any
pooled investment product invested primarily in the security indicated. Components do not add to 100% because of rounding.
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