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Becoming engaged investors: Stepping out of cash

Overallocation to cash is a global Investor Pulse finding that impacts Latin Americans as much, if not more, as other financial decision makers around the globe.

What proportion in Latin Americans’ portfolios does it hold, and what are its main appeals?

Being cash heavy limits people’s ability to grow their money when interest rates are low, as has been the case in most markets over the past several years.

What proportion of Latin Americans’ portfolios is held in cash?

Latin Americans are overallocated to cash

For many, there is an emotional bond to cash. Cash feels safe, familiar, convenient, and many have the misconception that it doesn’t lose value.

In addition, many Latin Americans do not feel that they have enough to invest. Even if they did, they are unfamiliar on how to begin, preventing the exploration of other options and the diversification of their money.

Why Cash is Appealing to Latin Americans

Latin Americans’ unfamiliarity with investing holds them back from profiting from the engagement they have with their finances.

A minority of financial decision makers believe that they are knowledgeable about investing, but a majority feel that they are entitled to better access to information.

How Knowledge Empowers Investment Decisions in Latin America

Supplied with better and more information, Latin Americans could be positioned to take the necessary steps to diversify their assets beyond cash.