Study: 62% of Australian retail investors hold on-exchange investments

Maria Nikolova

Between 2012 and 2017 the proportion of investors aged between 18 and 24 years old that hold on-exchange investments has doubled to just over 20%, showing that young people invest more.

Australia unveiling new law to decimate smaller FX firms

Australia has more than 11 million retail investors, but this number could be higher if companies consider trends in the Australian market and try to attract new clients accordingly. The latest changes to the Australian retail investment landscape have been highlighted by the ASX Australian Investor Study 2017.

Research Now was engaged to field the survey and collect data which was then analyzed by Deloitte Access Economics.The survey was in field during February and March 2017, with 4,000 responses received in total.

Around three-fifths (60%) of Australian adults directly hold investments of some sort outside of their institutional superannuation fund, the study shows. On-exchange investments represent the most commonly held investments – 62% of all investors (that is, of the 60% of Australian adults that invest in some way) hold them. This is followed by cash savings (56%) and investment property (37%).

Regarding the profile of the retail investor, the study shows that young Australians are investing more. Between 2012 and 2017 the proportion of investors aged between 18 and 24 years old that hold on-exchange investments has increased twofold to more than 20%, and there has been a 15 percentage point rise in the proportion of 25-34 year olds investing in on-exchange investments during the same period.

Interestingly, young investors are more risk averse than older investors, as 4 in 5 young investors prefer guaranteed or stable investment returns. This may provide a signal to the investment industry as to how to better tailor their products and advice to meet this requirement, for instance, by considering capital protected products and providing education on risk management.

The use of professional advice is widespread amid investors, as the study showed that around 60% of all investors use such advice – from a financial planner, full-service stockbroker, accountant, or lawyer.

However, investors are more reluctant to make use of robo advice. Amid young people (18-24 years old), around 15% said they would use robo advice, whereas 28% said they would not. Only 4% of retirees said they would use robo advice, while 41% said they would not.

Non-advice brokers and/or online trading platforms remained the most common trading methods. Of young investors that have transacted in the past 12 months, 42% used a non-advice broker or online trading platform. The proportion is at 69% for retirees.

Read this next

Digital Assets

Midas launches investment strategies for the ‘crypto winter’

Midas.Investments has released three new investment strategies on its custodial CeDeFi platform, creating new opportunities during the ‘crypto winter’.   The platform merges diverse approaches to digital asset management into single-click products to let investors gain steady profits in any market conditions — including the ongoing bear market. a custodial CeDeFi platform, CeDeFi: Unlocking the […]

Digital Assets

Bitcoin.com Wallet adds several ERC-20 tokens

The product expansion includes representatives of the DeFi world, the Metaverse, and the largest stablecoins.

Market News

Savvy Investors to Profit Whether the Stock Market Rebounds or Not

Equities have gone up enormously since the low. SP500 has gained 13.88% since June 17. In August, the indices drifted sideways. On Wall Street, veteran investors expect a move in either direction.

Industry News

Wall Street-backed MEMX obtains SEC approval for options trading platform

The company has raised more than $135 million in funding from 18 stock trading and investing heavyweights, including BlackRock, Citadel Securities, and Morgan Stanley.

Industry News

Amundi US launches ESG strategy that seeks to outperform S&P 500

Amundi’s Responsible investing team includes more than 45 specialists, and its ESG analysis covers more than 13,500 issuers across debt and equity.

Industry News

Verto launches embedded FX payments solution

The Verto API automates currency conversions, tracks payments and exchange rates in real-time, and is being launched in the follow-up of a $10 million in Series A funding last year.

Industry News

SEC awards over $16m to whistleblowers after another successful enforcement action

The program is 10 years-old and has arguably played a critical role in the Division of Enforcement’s ability to effectively detect wrongdoing, protect investors and the marketplace, and bring violators to justice.

Digital Assets

Ripple submits most succint explanation of Hinman issue in XRP lawsuit

It might be useful to get up to date as this could be the end of the road for the SEC.

Retail FX

TradingView integrates first Brazilian broker, Órama Investimentos

Órama offers all kinds of investment products, from fixed income to crypto-related funds.

<