Findings Risk When Risk Feels Different In Practice Than In Theory

When risk feels different in practice than in theory

Many investors misjudge their risk appetite. Fulcrum bridges that gap, aligning intention with action before markets test their resolve.

by

Ficus People

Risk

Research shows a gap between how investors expect to handle risk and how they actually respond when markets shift.

A 2021 CFA Institute study found that nearly half of retail investors worldwide struggle to align their risk appetite with the decisions they make.

When markets turn volatile, as many as 8 in 10 investors take steps that contradict their original plans—selling too early or holding back from opportunities they once pursued confidently. (CFA Institute, 2021; Statman, 2019)

Most investors only discover their true risk appetite when volatility forces their hand.

In Sub-Saharan Africa, while data on investor behaviour is still emerging, limited financial guidance and literacy—averaging below 40% in major economies (S&P Global FinLit Survey, 2015)—make this disconnect even more likely.

The result is that many investors lack a clear picture of their own investment approach, leading to decisions that feel reactive rather than steady.

The Ficus Fulcrum assessment helps bridge this gap by giving investors a clearer view of their risk appetite and investment focus—before markets test them.

Sources:

  1. CFA Institute Investor Trust Study 2021: Link
  2. Statman, Meir (2019). Behavioral biases in investing. SSRN
  3. S&P Global FinLit Survey 2015: Full Report

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