Fidelity International Retail Investor Survey: High Cash Holdings Among Japanese Investors Suggest Potential Impact on Long-Term Wealth Building
Key facts
- Fidelity International Retail Investor Survey: High Cash Holdings Among Japanese Investors Suggest Potential Impact on Long-Term Wealth Building
- A survey of 13,000 retail investors by Fidelity reveals that Japanese investors hold 31% of their portfolios in cash, surpassing the global average. While emergency funds and loss aversion are primary reasons, their 5-year expected return is a robust 5.6%. Improved knowledge of investment targets and methods was identified as the key trigger for shifting funds into investments.
- Source: PR Times
- Date: May 20, 2026
Direct answer
A survey of 13,000 retail investors by Fidelity reveals that Japanese investors hold 31% of their portfolios in cash, surpassing the global average. While emergency funds and loss aversion are primary reasons, their 5-year expected return is a robust 5.6%. Improved knowledge of investment targets and methods was identified as the key trigger for shifting funds into investments.
- Citation
- Fidelity International Retail Investor Survey: High Cash Holdings Among Japanese Investors Suggest Potential Impact on Long-Term Wealth Building (May 20, 2026), PR Times
- Source
- PR Times
- Date
- May 20, 2026
A survey of 13,000 retail investors by Fidelity reveals that Japanese investors hold 31% of their portfolios in cash, surpassing the global average. While emergency funds and loss aversion are primary reasons, their 5-year expected return is a robust 5.6%. Improved knowledge of investment targets and methods was identified as the key trigger for shifting funds into investments.
📋 Article Processing Timeline
- 📰 Published: May 20, 2026 at 19:15
- 🔍 Collected: May 20, 2026 at 11:01
- 🤖 AI Analyzed: May 20, 2026 at 11:03 (1 min after Collected)
Reasons for cash holdings among Japanese investors: almost half (47%) cite 'funds prepared for emergencies', and 16% cite 'wanting to avoid losses'.
Expected investment returns over the next 5 years average 5.6% annually in Japan, and 8.6% in the Asia-Pacific region.
The main triggers for shifting to investing in Japan are 'improved knowledge of investment targets and methods' (25% each).
Fidelity Investments Japan Limited (President & Representative Director: Colby Penzone; Headquarters: Minato-ku, Tokyo; hereinafter 'Fidelity Investments Japan') has announced the follow-up findings of the 'Be Invested Study (Retail Investor Survey)*' conducted by Fidelity International, surveying 13,000 retail investors in the Asia-Pacific region and Europe (including 1,000 in Japan). Following the previous analysis of investor behavior in a highly volatile market environment, this time the focus is on the reality of cash holdings in investors' asset portfolios and the factors that prompt changes in investment behavior.
In this survey, analysis of retail investors in the Asia-Pacific region and Europe suggested that investors in the Asia-Pacific region tend to have a relatively high cash ratio in their asset portfolios, which may impact long-term investment performance.
Investors in the region currently hold an average of 26% of their asset portfolios in cash, showing an attitude that emphasizes liquidity and short-term peace of mind. This level exceeds the global average of 22% and Europe's 18%, and Japan's high cash ratio stands out particularly at 31%.
Question: Out of your total investment portfolio, what percentage is invested in the following assets? Please answer so that the total equals 100%.
As the main reason for holding cash, nearly half (47%) of Japanese investors cited 'funds prepared for emergencies,' which was the most common response across all surveyed countries and regions. On the other hand, regional differences were seen in the runner-up reasons; while 'waiting for a better investment timing' was frequently cited in Taiwan (28%), Mainland China (23%), and Hong Kong (22%), it was followed by 'wanting to avoid losses' at 16% in Japan.
As such, while a tendency to emphasize loss aversion is seen in Japan, they expect an average annual return of 5.6% over the next 5 years, which significantly exceeds current deposit interest rates. If the cash holding ratio is high, it may affect asset growth and the realization of expected returns.
Furthermore, the expected average annual return for investors across the entire Asia-Pacific region is 8.6%, indicating higher return expectations compared to Japanese investors.
Question: Over the next 5 years, what do you think your annual investment yield will be? (Options: Loss, 1% increments from 0% to 20%, 20% or more)
Factors Prompting Changes in Investment Behavior
The survey also revealed the triggers for investors to move funds from cash to investments. Main factors include the decline in yields of cash products, as well as improved understanding of investment targets and methods, access to professionals, and tax incentives. There are also regional differences in these motivations.
In Japan, 'improved knowledge regarding investment targets' and 'improved knowledge regarding investment methods' were both cited at 25% as the main triggers.
Question: What kind of trigger would make you consider moving cash into investments with higher expected returns? (Select up to two)
Japan
Improved knowledge regarding investment targets (25%)
Improved knowledge regarding investment methods (25%)
Australia
Enhancement of tax incentives (30%)
Taiwan
Decline in yields of cash products (27%)
Hong Kong
Decline in yields of cash products (37%)
Mainland China
Opportunities to consult with professionals such as financial advisors (30%)
Singapore
Improved knowledge regarding investment targets (26%)
Furthermore, many investors have shown an intention to review how they utilize their cash. As destinations for reallocation, 52% across the Asia-Pacific region stated they would consider stocks, and 28% would consider bonds and commodities. Stocks were the most frequently cited in all markets, with 48% in Japan also considering stocks as an investment destination.
On the other hand, there is also a tendency to continue emphasizing products with characteristics close to cash, such as fixed deposits. Particularly in Japan, a certain number of investors (16%) answered that they would retain their funds as cash, marking a high level compared to the average across the entire Asia-Pacific region.
Question: If you were to move a portion of your savings to a non-savings asset class, which do you think would be the most likely? (Select up to three)
Atsushi Kuroyanagi, Head of the Wealth Building Research Institute at Fidelity Investments Japan, commented as follows:
'In addition to the current high savings ratio, transferring savings to other asset classes going forward...'
Expected investment returns over the next 5 years average 5.6% annually in Japan, and 8.6% in the Asia-Pacific region.
The main triggers for shifting to investing in Japan are 'improved knowledge of investment targets and methods' (25% each).
Fidelity Investments Japan Limited (President & Representative Director: Colby Penzone; Headquarters: Minato-ku, Tokyo; hereinafter 'Fidelity Investments Japan') has announced the follow-up findings of the 'Be Invested Study (Retail Investor Survey)*' conducted by Fidelity International, surveying 13,000 retail investors in the Asia-Pacific region and Europe (including 1,000 in Japan). Following the previous analysis of investor behavior in a highly volatile market environment, this time the focus is on the reality of cash holdings in investors' asset portfolios and the factors that prompt changes in investment behavior.
In this survey, analysis of retail investors in the Asia-Pacific region and Europe suggested that investors in the Asia-Pacific region tend to have a relatively high cash ratio in their asset portfolios, which may impact long-term investment performance.
Investors in the region currently hold an average of 26% of their asset portfolios in cash, showing an attitude that emphasizes liquidity and short-term peace of mind. This level exceeds the global average of 22% and Europe's 18%, and Japan's high cash ratio stands out particularly at 31%.
Question: Out of your total investment portfolio, what percentage is invested in the following assets? Please answer so that the total equals 100%.
As the main reason for holding cash, nearly half (47%) of Japanese investors cited 'funds prepared for emergencies,' which was the most common response across all surveyed countries and regions. On the other hand, regional differences were seen in the runner-up reasons; while 'waiting for a better investment timing' was frequently cited in Taiwan (28%), Mainland China (23%), and Hong Kong (22%), it was followed by 'wanting to avoid losses' at 16% in Japan.
As such, while a tendency to emphasize loss aversion is seen in Japan, they expect an average annual return of 5.6% over the next 5 years, which significantly exceeds current deposit interest rates. If the cash holding ratio is high, it may affect asset growth and the realization of expected returns.
Furthermore, the expected average annual return for investors across the entire Asia-Pacific region is 8.6%, indicating higher return expectations compared to Japanese investors.
Question: Over the next 5 years, what do you think your annual investment yield will be? (Options: Loss, 1% increments from 0% to 20%, 20% or more)
Factors Prompting Changes in Investment Behavior
The survey also revealed the triggers for investors to move funds from cash to investments. Main factors include the decline in yields of cash products, as well as improved understanding of investment targets and methods, access to professionals, and tax incentives. There are also regional differences in these motivations.
In Japan, 'improved knowledge regarding investment targets' and 'improved knowledge regarding investment methods' were both cited at 25% as the main triggers.
Question: What kind of trigger would make you consider moving cash into investments with higher expected returns? (Select up to two)
Japan
Improved knowledge regarding investment targets (25%)
Improved knowledge regarding investment methods (25%)
Australia
Enhancement of tax incentives (30%)
Taiwan
Decline in yields of cash products (27%)
Hong Kong
Decline in yields of cash products (37%)
Mainland China
Opportunities to consult with professionals such as financial advisors (30%)
Singapore
Improved knowledge regarding investment targets (26%)
Furthermore, many investors have shown an intention to review how they utilize their cash. As destinations for reallocation, 52% across the Asia-Pacific region stated they would consider stocks, and 28% would consider bonds and commodities. Stocks were the most frequently cited in all markets, with 48% in Japan also considering stocks as an investment destination.
On the other hand, there is also a tendency to continue emphasizing products with characteristics close to cash, such as fixed deposits. Particularly in Japan, a certain number of investors (16%) answered that they would retain their funds as cash, marking a high level compared to the average across the entire Asia-Pacific region.
Question: If you were to move a portion of your savings to a non-savings asset class, which do you think would be the most likely? (Select up to three)
Atsushi Kuroyanagi, Head of the Wealth Building Research Institute at Fidelity Investments Japan, commented as follows:
'In addition to the current high savings ratio, transferring savings to other asset classes going forward...'
FAQ
How does Japan's cash ratio compare globally?
Japanese investors hold 31% in cash, significantly higher than the global average of 22% and Europe's 18%.
Why do Japanese investors prefer cash?
Nearly half cite 'emergency funds', and 16% cite 'avoiding losses' due to a strong loss-aversion mindset.
What is needed to trigger a shift to investing?
Improved knowledge regarding investment targets and methods is identified as the primary trigger.