5 Learnings from the 2017 ASX Investor Study
Every year, the Australian Securities Exchange (ASX) publishes an Investor Study Report, with key insights and statistics on Australians’ investment behaviours within the year. The report focuses on five key areas; retail investment in Australia, the investment landscape, who is investing, what are Australians investing in and the reasons why Australians invest.
From a financial perspective, the report seeks to uncover key motivations, behaviours and perspectives everyday Australians hold with regards to investments and their money. And whilst many of the findings are positive and sight a desire for financial freedom, there are always some findings that leave us as financial advisors scratching our heads a little.
With regards to the 2017 ASX Investor Study, here are what we consider to be five key takeaways:
- Only 31% of Australian adults hold shares
Whilst we accept that stock investing is not the only form of investment or diversifying your income streams, it is still a number that leaves us a little bewildered. The reality is, that with a little training and guidance, anyone can make money from investing in shares. If you haven’t already, then start investing in shares today – when you still have the value of time on your side.
- 55% of non-investors believe they don’t have enough money to invest
And within this sub-class, around 25% believe they would need $10,000 or more to being investing. We cannot stress enough that you do not need a high amount of capital to begin investing – many platforms will allow you to trade packets of $500. With the power of compound interest, even investing a small amount can lead to great returns in the future. Speaking with a financial advisor can also ensure that you are educated on investment vehicles suitable to your personal position.
- SMSF’s continue to rise
The report states that 15% of Australian adults hold investments in a self managed superannuation fund, whilst 30% who do not current use a SMSF planning to set one up in the future. This denotes an attitude of Australians wanting to take back control of their super and retirement funds, and provides key opportunities for Australians to grow their wealth through wise SMSF investment choices. Get in contact with a SMSF Advisor for specialist information.
- 18 to 24 Year Old Investors Doubled
Between 2012 to 2017, the number of 18 to 24 year olds holding on-exchange investments doubled to 20%. This is an interesting insight on a cohort of the population that traditionally did not see high levels of personal investment, largely due to many still undertaking education or not having high levels of income. Given the struggles many young people have in terms of home ownership and other financial matters (such as HECS loans), this provides both an opportunity for young people to generate more income, but also exposes them to levels of risk as the possibility of chasing higher returns to make a home deposit or other significant financial investment. This insight stresses the need for a good financial education for young people.
- 61% of Investors use Professional Advice
We believe that this statistic seeks to show the true worth of gaining professional financial advice. Of those who use professional advice, 49% sighted they use professional advice to gain investment advice tailored to their personal needs and 40% to seek diversification and minimise risk. Whilst the levels of professional advice vary from individual to individual, a majority of Australians who invest do gain value from the relationship with their professional advisors.