Investor Ignorance

A 2009 study by the National Financial Capacity found that 48% of those surveyed believed that owning a single stock was less risky than owning a mutual fund. Only 36% of adults surveyed knew that at 20% annual compounding, money would double in less than five years. In another survey, just 37% of respondents said they compared credit card interest rates when shopping for a credit card; only half shopped for auto loans.