Investor education initiatives are essential to improve financial literacy and empower citizens to make sound decisions when managing their savings. Without basic knowledge on financial concepts such as risk diversification, compound interest and real rate of return, citizens will struggle to invest or make informed decisions. A lack of sufficient financial literacy in most European countries helps explain why the vast majority of households don’t directly invest any of their savings in the capital markets.

EFAMA has been at the forefront of efforts to urge authorities to raise financial literacy levels in the general population, through widespread and improved financial and investor education initiatives.