The article discusses the challenge of “information overload” faced by investors due to the vast range of financial products available. Daphne Lye, solutions lead at MoneyOwl, points out that this overwhelm often causes people to avoid making decisions.
Financial literacy, which includes understanding products and asking the right questions, is key to making informed decisions. Research by Dr. Joelle Fong shows that financially literate individuals tend to make better investment and debt choices. However, Ms. Tan Huey Min cautions that overconfidence can still lead knowledgeable investors to make poor decisions.
While financial institutions offer basic educational resources, Lye and others argue that consumers expect advisers to act in their best interests, not just adhere to the suitability rule. Trust in advisers and regulatory bodies, like the MAS, is also seen as key to making sound financial choices.