Traders Union research: 41% of investors bet on a single asset

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41% of investors bet on a single asset

How many asset classes investors use

The research also showed that most investors distribute funds across too few asset classes. 22% of respondents hold only one asset class, while another 34% hold two asset classes. As a result, 56% of participants have exposure to only one or two types of investments.

Another 26% of investors use three or four asset classes. Only 18% of respondents distribute capital across five or more asset classes.

At the same time, having several positions in a portfolio does not always mean real diversification. For example, an investor may hold several technology stocks or several cryptocurrencies but still depend on the same market factors. In this case, the portfolio looks broader, but risks remain concentrated in one theme or sector.

How experience affects diversification

Traders Union data show that investors tend to broaden their portfolio structure with experience. Among participants with less than two years of experience, only 11% hold five or more asset classes. Among investors with two to five years of experience, this figure is 17%.

The picture is noticeably different among more experienced investors. Among respondents with more than five years of experience, 32% already have positions in five or more asset classes. This suggests that over time, investors more often move from bets on individual assets to broader capital allocation.

Traders Union links this to practical market experience. Investors who have already faced downturns, high volatility or losses are more likely to pay attention not only to potential returns but also to overall portfolio risk.

Investors overestimate their diversification

One of the key findings of the research was the gap between how investors assess themselves and how their portfolios are actually structured. 71% of participants said they consider themselves diversified investors.

However, among those who answered “yes,” 38% still hold more than half of their portfolio in a single asset. This shows that investors often understand diversification as a general idea but do not always apply it in practice.

Traders Union notes that this gap becomes especially important during periods of strong market trends, hype around specific sectors and social media influence. An investor may consider a portfolio diversified if it contains several assets, while most of the capital still depends on one position.

As a reminder, in a previous research, Traders Union analysts found that retail Forex traders most often choose short and medium timeframes.

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