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Australian retail investors’ habits and trends revealed

  • July 30 2021
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Australian retail investors’ habits and trends revealed

By Cameron Micallef
July 30 2021

The average Australian retail investor is younger, cocky about their skillset, and sees inflation as the biggest worry to their portfolio, an industry survey has revealed.

Australian retail investors’ habits and trends revealed

Australian retail investors’ habits and trends revealed

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  • July 30 2021
  • Share

The average Australian retail investor is younger, cocky about their skillset, and sees inflation as the biggest worry to their portfolio, an industry survey has revealed.

Australian retail investors’ habits and trends revealed

Trading platform eToro has released its latest quarterly trading survey data, which paints a picture of the typical Aussie investor.

The survey results of 500 Aussie investors, as part of a global study by eToro found that 84 per cent of Australian respondents confirmed they are more confident in their own investments than with the current state of the global and Australian economies.

A further 57 per cent expressed their optimism about their investments over a period of 12 months, with two in five of Generation Z and Millennials conceding they plan to increase their holdings.

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Older Aussies were less confident, with just 29 per cent of Generation X and Baby Boomers looking to increase their holdings over the next year.

According to eToro’s Australian managing director Robert Francis, the results showed a shift in attitude towards the stock market that might not have existed prior to COVID-19.

“In 2020, we saw a confluence of circumstances, including the acceleration of digital technologies, commission-free stock investing, interest rate cuts and similar trends which well and truly pushed retail participation in the capital markets,” he said.

“Thanks to the rise of the retail investor, Australians are starting to take more control of their investments and understand what their strategy and risk appetite is before taking the plunge.”

Not only are younger Aussies getting into the market, they are bringing an aggressive mindset, looking to accumulate wealth through technology, US-based and crypto assets.

The survey also revealed that one in three younger Australian retail investors (32 per cent) are more likely than their older counterparts (16 per cent) to invest in crypto assets.

Of crypto assets, one in five Australian retail investors believe bitcoin will present the best investment opportunities over the next three months (21 per cent).

Moreover, eToro’s results revealed that longer-term investors are looking to do their own research, instead of getting swept up in the latest meme stock on social media.

“Australian retail investors who have been investing for over 10+ years are considerably less likely than those who have been investing for shorter periods of time to use sources such as online forums and social media,” the survey said.

“Google searches are the most common avenue among Australian retail investors (41 per cent).”

And while investors fear inflation might be the cause of their downturn, overall the future for younger investors is bright.

“It’s an exciting space to be part of, as younger generations are certainly finding their own footing, rather than simply following their parents when it comes to the types of investments they make,” Mr Francis concluded.

Australian retail investors’ habits and trends revealed
Australian retail investors’ habits and trends revealed
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About the author

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Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

About the author

author image
Cameron Micallef

Cameron is a journalist for Momentum Media's nestegg and Smart Property Investment. He enjoys giving Aussies practical financial tips and tricks to help grow their wealth and achieve financial independence. As a self-confessed finance nerd, Cameron enjoys chatting with industry experts and commentators to leverage their insights to grow your portfolio.

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