Black and Hispanic Americans Prefer to Take More Control Over Their Investments

New J.P. Morgan Wealth Management Study also finds that Black and Hispanic Americans Care More About the Social Impact of their Investments

Black and Hispanic Americans prefer to have more control over their investments and care more about the social impact of companies they are investing in, according to new research from J.P. Morgan Wealth Management. J.P. Morgan surveyed more than 2,000 Americans this year to understand what motivates – or prevents – them from getting invested.

“Investing is part heart and part science,” said Kristin Lemkau, CEO of J.P. Morgan Wealth Management. “It’s important to know what matters most to a client as we empower them to invest, help grow their wealth and keep them on track to reach their goals.”

Here are four key takeaways from The J.P. Morgan Wealth Management Diverse Investor Study:

1. Most Black and Hispanic Americans prefer to have more control over their investments

• 59% of Black Americans and 57% of Hispanic Americans want to take an active role in selecting the stocks, bonds or funds that make up their investment portfolio, compared to 46% of White Americans

2. Black and Hispanic Americans care more about the social impact of the companies they’re investing in

Black and Hispanic Americans say it’s important that their investments:

• are Black, Indigenous and People of Color (BIPOC)-owned, started, and/or operated (70% and 46%, compared to 27% of White and 31% of Asian),
• have a positive environmental impact (72% for both Black and Hispanic, compared to 55% of White and 57% of Asian),
• are women-owned, started, and/or operated (60% and 48%, compared to 30% of White and 40% of Asian),
• promote gender and racial equity and diversity (66% and 54%, compared to 35% of White and 42% of Asian)

“Our goal is to help close the racial wealth gap and help all members of the communities we serve have access to the resources they need to build generational wealth,” said David Miree, Global Head of Diversity, Equity & Inclusion at JPMorgan Chase. “When more people have a fair shot at opportunity, our economy and communities are stronger.”

3. Despite volatility and uncertainty, most investors are not concerned about market decline

Overall, the majority of investors:

• are concerned about rising inflation and interest rates (88 percent)
• would not be concerned about a 20 percent dip in their portfolio (69 percent)
• automate their investments on a regular basis (58 percent)

4. Women are optimistic about their financial situation, but take a more cautious approach than men

• 59 percent of women say their financial situation is better now than it was five years ago, compared to 62 percent of men

• 45 percent of women describe their investing strategy as cautious, compared to 33 percent of men
• 23 percent of women have created a will, compared to 17 percent of men

“We love to see all people, but under-represented investors in particular, feeling more confident about their finances, and we want to keep that momentum rolling,” said Jeanne Sun, General Manager of Inclusive Investing at J.P. Morgan Wealth Management. “It’s why we created our Women and Investing resource hub and continue to host in-person educational seminars across the country. It’s all part of empowering women and diverse investors to build wealth by helping them cut through the noise and make decisions that fit their lives.”

To learn more about the J.P. Morgan Wealth Management Diverse Investor Study findings, visit: https://www.chase.com/personal/investments/learning-and-insights/article/inclusive-investing-study

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