WINDHOEK: A significant portion of Namibians are hesitant to invest , and many who can invest avoid taking risks . This is contained in the 2023 Old Mutual Financial Services Monitor ( OMFSM ) availed to Nampa on Monday , which indicates that 37 per cent of Namibians are unwilling to engage in any investment risks . This cautious approach is particularly common among younger individuals . ' The Namibian financial market presents a variety of investment products across banking and non - banking sectors . Risk tolerance differs significantly across the population , with a substantial number preferring safer , low - risk investments . Many people opt for savings accounts or similar low - risk alternatives instead of higher - return investments ,' it said . This , it added is largely due to a desire for financial security and the avoidance of potential losses and investors typically favour options that provide steady , if lower , returns over time . Risk aversion is further driven by concerns over market volatili ty . High - return investments often involve uncertainty , which many choose to avoid . The preference for stability leads investors to favour products with predictable growth , it said . ' On the other hand , those more inclined to take risks understand that higher returns generally come with increased risk . These investors are often drawn to short - term opportunities , but they must be prepared for market fluctuations and potential losses . Investors with a higher tolerance for risk usually adopt a long - term perspective , which helps them navigate periods of market instability ,' it stated . It further noted that for younger investors , the willingness to accept risk may be influenced by a longer investment timeline . With more time to recover from potential losses , younger individuals may feel more comfortable taking risks . However , this inclination can also stem from a lack of experience , as younger investors may not fully grasp the complexities of riskier investments . ' Investment strategies in Namibia continue to be shaped by individual risk tolerance and financial goals . Safer options such as money market funds , savings accounts , and other secure financial instruments remain popular among those who prioritise preserving their capital ,' it said . At the same time , for those seeking higher returns and willing to face greater risks , numerous opportunities exist in the financial market . The divide between risk - averse and risk - tolerant investors reflects broader patterns in the country ' s investment landscape , it said . Source: The Namibia News Agency