Consumer research across Europe highlights that retail investors tend to prioritize capital preservation, favoring products perceived as stable and low risk. While these instruments offer reassurance, they typically provide limited potential for real capital growth.
This risk-averse behavior contributes to the persistently low level of retail participation in capital markets compared with other advanced economies, despite Europe’s relatively high household savings rates.
A comparative study by the European Central Bank (ECB) shows that on average European households hold around 30%–35% of investments in liquid deposits (vs. 10%–15% for the US) and 20%–25% in equities (vs. 35%–45% for the US).1
At the same time,…
