Risk tolerance in the younger U.S. mutual fund investor set has returned to the level seen before the financial crisis of 2008, according to research from the Investment Company Institute.

Specifically, the ICI found that in May 2012, the fraction of mutual fund–owning households younger than 35 willing to take above-average or substantial financial risk to get higher investment returns was 39%—up from a low of 31% in May 2010 and May 2011 and slightly higher than its 37% level in May 2008. At the same time, risk tolerance among households in the oldest age group—aged 65 or older—stood at 13 in May 2012, compared with 14 in May 2008.

Register or login for access to this item and much more

All Financial Planning content is archived after seven days.

Community members receive:
  • All recent and archived articles
  • Conference offers and updates
  • A full menu of enewsletter options
  • Web seminars, white papers, ebooks

Don't have an account? Register for Free Unlimited Access