April 6, 1993
TO: BOARD OF GOVERNORS NO. 28-93
MEMBERS - ONE PER COMPLEX NO. 28-93
DIRECT MARKETING COMMITTEE NO. 24-93
PUBLIC INFORMATION COMMITTEE NO. 22-93
RESEARCH COMMITTEE NO. 12-93
SALES FORCE MARKETING COMMITTEE NO. 24-93
SHAREHOLDER COMMUNICATIONS COMMITTEE NO. 19-93
INDUSTRY STATISTICS COMMITTEE NO. 6-93
RE: Piecing Together Shareholder Perceptions of Investment Risk
__________________________________________________________
I enclose copy of the most recent publication from the Research
Department, Piecing Together Shareholder Perceptions of
Investment Risk.
Financial professionals strive to communicate the meaning of
risk, but for the individual investor it remains one of the least
understood principles of investing. Based on in-home interviews
with more than 300 mutual fund owners, this report investigates
shareholders' attitudes about an understanding of risk,
concentrating their perception of risk rather than the investment
community's definition or risk. The report provides a detailed
analysis of the risk assessment, investment orientation, and
investment profile of low, moderate, and high risk-tolerant
shareholders. The report also presents the results a
segmentation analysis of shareholder attitudes toward risk and a
comparison of fund owners' and nonfund owners' assessment of
risk.
For comments or questions about this report please contact Vicky
Leonard-Chambers at (202) 955-3563. For additional copies call
Ada Hayes at (202) 955-3581.
Jacob S. Dreyer
Vice President and
Chief Economist