Infographics and Financial Decisions

  • Peter de Goeij Peter de Goeij
  • Ruben Cox Ruben Cox

“Infographics can help potentially vulnerable investors make better decisions.”

European investment funds have been including infographics in their mandatory information documents since 2012. Research shows that such visual depictions of the differences between major investment funds can help consumers with low financial literacy and little investment experience to significantly reduce avoidable fees. This effect is absent among retail investors with investment experience, although the infographics do not harm their decision-making process either.

Key Takeaways for the Industry

  • These results may be relevant for those who have to make financial decisions independently such as self-employed individuals or temporary workers.
  • In addition, the findings suggest that pension providers could improve the comprehensibility of their information documents by including thoughtfully developed infographics.

Netspar, Network for Studies on Pensions, Aging and Retirement, is a thinktank and knowledge network. Netspar is dedicated to promoting a wider understanding of the economic and social implications of pensions, aging and retirement in the Netherlands and Europe.

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