Takeaways
- Research highlights an aspiration-action gap where investor expectations often don’t match their investment approach.
- High cash allocations and lack of diversification remain key challenges, despite high confidence by many that they will achieve their financial goals.
- Behaviour compounds the gap: in volatile markets, many investors pause or exit rather than stay invested.
- Confidence also remains a barrier, with investors overwhelmed by complexity and seeking clearer, trustworthy guidance.
- Small shifts can make a difference: our analysis suggests moving from cash to a balanced 60/40 portfolio could improve returns by up to 3 percentage points annually over 10 years.
Like maintaining a healthy diet, many people know what is good for them when investing. Save early and regularly. Do not panic when markets fall. Diversify investments. And maintain a long-term perspective.
Yet, our 2026 Be Invested Global Study,1 which surveyed 13,000 investors in 13 markets globally, shows many may not be taking the steps that will help them achieve their long-term financial goals.
Hurdle 1: Goals vs behaviour
Investors globally have clear goals - whether retirement security, achieving financial independence, or leaving a legacy. About 65% are confident they will achieve their financial goals. However, our study reveals a persistent and widening gap between aspiration and action.
Over the next five years, investors aim for an average annual return of 7.9%. Yet about 22% of their investment portfolio2 is invested in cash (see Figure 1). This is in addition to an average of about USD80,000 of their investable assets being held in savings accounts or similar. In the long term, holding cash risks generating little to negative real returns after inflation.
Figure 1: Average asset allocation (Global, Asia-Pacific and Europe) within investment portfolio
Source: Fidelity International, Opinium, May 2026.
This is what we call the aspiration-action gap where investor confidence and return expectations are not matched by how portfolios are positioned in practice. Without action, investors may not achieve the outcomes they expect.
Fidelity International’s Capital Market Assumptions, which are forward-looking estimates of long-term asset class returns, highlight the potential impact of this mismatch.
Our assumptions estimate that a fully invested cash portfolio will return 2.1% annually over 10 years, or negative real returns of -0.2% after inflation. In comparison, a euro balanced portfolio comprising 60% equities and 40% bonds is estimated to return 5.1% in nominal terms and 2.8% after inflation over the same period, a difference of about 3 percentage points against cash.
While these are estimates, they illustrate the potential impact of portfolio positioning over time for investors in Europe and Asia-Pacific (see Figure 2).
Figure 2: Estimated real returns after inflation on investments vs. investor aspiration-action gap over 10 years
Europe (€)
Asia-Pacific (USD)
Past performance is not a reliable indicator of future returns. For illustrative purpose only.
Source: Fidelity International, May 2026, estimates are cumulative returns based on Fidelity capital market assumptions (CMAs), which uses proprietary modelling for illustrative purposes only. They reflect the views of investment professionals at Fidelity International. CMAs based on data as of March 31, 2026. Aspiration return based on Q: What level of annualised return would you expect to see on your investments in five-years’ time? The aspiration-action gap refers to the difference between the aspiration return target European investors expect on an initial €10K investment and the estimated real return under Fidelity’s CMAs.
Diversification is another area where intention and behaviour can diverge. While investors recognise its importance, many portfolios remain concentrated, reflecting a strong home bias. This can limit exposure to global opportunities and reduce return potential, as well as increase vulnerability to market-specific risks.
Hurdle 2: Emotional vs. rational decision-making
Even well-constructed portfolios can be undermined if investors are unable to stay the course. This highlights a second element to the aspiration-action gap: not just how investors allocate, but whether they can stay invested long enough for those strategies to deliver.
During periods of high market volatility, only 25% of respondents globally said they would stick to their long-term investment strategy.
One in five (21%) would pause investing further to see how markets evolve, while a smaller but significant group (7%) would immediately sell assets in affected sectors (see Figure 3). Time in the market is more important than timing the market - missing out on the best days can have outsized negative impacts on portfolio performance.
Figure 3: Response to significant market volatility
Hurdle 3: Confidence and information gap
Our research also shows that while investors recognise the importance of investing, they sometimes lack the clarity or confidence to act. This creates the final element of the aspiration-action gap: investors hesitate when faced with complexity or uncertainty.
Those with low risk tolerance are particularly vulnerable, with 35% feeling anxious or overwhelmed when making a new investment, compared to 18% of those with high risk tolerance. Low-risk investors are also less likely to believe their portfolio will reach their goals. Importantly, our study found those who have a financial adviser are more confident of meeting long-term goals and are more comfortable taking risk.
Financial institutions remain the top source of information for making investment decisions at 42% of global respondents, followed closely by mainstream news outlets at 38% and professional advice at 34%. Other sources such as AI, online discussion forums and social media are also becoming more popular. One in four say they use ChatGPT or AI to make investment decisions (see Figure 4).
Digital advances offer immediacy and personalisation, but they also introduce risks. Investors must consider whether information is reliable and what the consequences may be if it is not.
Figure 4: Sources of information for investment decisions
Closing the gap
As individuals take on greater responsibility for their financial futures, the challenge is not just understanding what to do but acting on it consistently.
We commissioned this research to better understand the goals, motivations and behaviours that shape how people invest today. It highlights three core hurdles: a disconnect between goals and portfolio positioning, behavioural responses that can derail long-term plans, and a lack of confidence or clarity when making decisions.
Today, around one-third of household investable assets in Europe remain in cash and bank deposits. At the same time, many investors continue to find investing complex or inaccessible. That must change.
We believe confidence drives action, and action drives better outcomes. Our aim is to support investors in this shift through our expertise in retirement and long-term savings, and by working with partners to make investing simpler and more accessible.
1The study is based on a survey conducted between 12 February and 11 March 2026 by Opinium. Countries in scope included Germany (1,000), France (1,000), Italy (1,000), Netherlands (1,000), Spain (1,000), Switzerland (500), UK (1,000), Hong Kong (1,000), Singapore (1,000), Taiwan (1,000), Australia (1,000), Japan (1,000) and China (1,500).
2For the purpose of the survey, cash within an investment portfolio excludes cash savings accounts.
