One in five young investors between 18 and 30 expect to see growth from their investments in less than six months, according to new research.
This compares with 11% of Generation X, 20% of whom expected to see growth within a year, new research from investment trust manager Alliance-Witan reveals.
Just over a quarter (28%) of Gen-Z were willing to wait more than two years for significant returns, while a mere 17% were willing to wait more than five years to see their money grow.
Younger investors were also being held back by lack of knowledge. One in six (16%) Gen-Z investors said they do not understand investing, in comparison to 9% of Boomers.
Mark Atkinson, managing director at Willis Towers Watson, which manages Alliance Witan, said: “There is often a misunderstanding among beginners regarding what investing can realistically achieve over short timeframes. Our research illustrates a clear, two-pronged dilemma that can harm long-term wealth creation.
"While a lack of investment knowledge or an aversion to risk keeps many people on the sidelines, those who do enter are frequently fuelled by unrealistic expectations of immediate market growth.
“Understanding time horizons, managing expectations, fostering patience and building a sufficiently diversified portfolio are all antidotes to common concerns when it comes to starting out with investing. To illustrate the true value of a long-term approach, our 'Profit from Patience' modelling found that an investor who consistently reacted to short-term market dips could miss out on up to £183,000 in gains over a 30-year period vs those who stayed invested for the duration.”
• Censuswide surveyed 2,000 consumers on behalf of Alliance Witan between 10 and 13 April.