A quarter of UK individual investors are stuck with investments they do not want because they are unable to liquidate assets, a study indicates.
Experience Invest, which published the report, said it was unable to say why investors were unable to liquidate, but the report also found that over 30% of UK individual investors that had wanted to exit investments over the last five years had abandoned the decision once they realised they would have to pay exit fees.
Nearly two thirds of those surveyed wanted investment providers to provide greater transparency when explaining how and when investments could be liquidated.
Nevertheless, many investors do consider exit strategies. The overwhelming majority of UK investors (80%) carefully consider potential exit strategies before making any investment and almost three quarters said the ease of liquidating an investment was a key factor when they decide which asset classes to back.
Jerald Solis, business development and acquisitions director at property investment firm Experience Invest, said: “It’s reassuring to see that the vast majority of investors in the UK are thinking carefully about their exit strategies before making an investment. But there are still many who don’t.
“Many investors get stuck with assets they cannot liquidate – both they and the investment providers must be diligent in ensuring potential exit strategies are clearly explained.”
The survey covered 831 investors with investments ranging from £10,000 (€11,000) to £10 million and reveals how they invest their money (see table).
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