Invest
Growth investments, portfolio diversification what investors really want
Invest
Growth investments, portfolio diversification what investors really want
Australian investors are once more hungering for growth-oriented investments, despite concerns of geopolitical drama and low interest rates, a new report reveals.
Growth investments, portfolio diversification what investors really want
Australian investors are once more hungering for growth-oriented investments, despite concerns of geopolitical drama and low interest rates, a new report reveals.
The latest Investor Product Needs Report from research firm Investment Trends has reported that while investors are looking to boost their exposure to growth-oriented investments, they maintain bearish about the current market, with the average investor predicting capital gains of between 1 and 5 per cent for the coming 12 months.
“Investors’ desire to increase their domestic share exposure has waned in recent years,” said Investment Trends senior analyst King Loong Choi.
“In addition, investor appetite to increase overseas exposure has been erratic, with geopolitical events and a perceived potential military conflict with North Korea generating increasingly wide swings in intentions.”
Nevertheless, maximising capital growth is the main focus for a quarter of investors, up from the 18 per cent who selected that option in 2016. Additionally, one-third of investors surveyed said they want to prioritise a balance of risk management and capital growth.
According to Mr Choi, this trend can be attributed to a “volatile geopolitical climate” coupled with low interest rates.
“Investors expect to face a wide range of investment-related challenges over the coming year, but positively, many of these challenges can be alleviated with assistance from investment product providers,” Mr Choi said.
Portfolio diversification
Eighty-four per cent of investors surveyed agreed that a well-diversified portfolio was an important factor in taking on the coming year.
Continuing, Mr Choi noted that while investors appreciate the importance of diversification, it’s not always easy to build such a portfolio.
“Product providers that best assist investors with their desire for diversification will stand out,” the analyst said.
At the same time, 40 per cent of those surveyed said they had difficulty accessing investments like international shares, private equity funds, commercial property and private business or venture capital.
This taste for diversification is also fuelling investor desire for managed funds, Investment Trends continued, noting that in the last four years the proportion of investors expressing interest in the vehicle nearly doubling from 7 per cent to 13 per cent.
Mr Choi said: “Growing interest in managed funds is buoyed by investors’ desire for diversification across asset classes, the perceived ease of not having to select individual stocks, and the access to a range of investment strategies that managed funds provide.”
As it stands, 55 per cent of investors who expressed an interest in managed funds said they would choose to invest directly via a fund manager, online broker or the ASX mFunds platform.
“Fund managers have a golden opportunity to meet this growing demand by facilitating easier access to their product suite,” Mr Choi said.
Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
Stock market
Beware the reversal of the sharemarket rally, expert says
The companies that offer the greatest risk for investors in 2021 are somewhat ironically many of the same companies that have provided the greatest return to investors in 2020, an expert has warned. ...Read more
Stock market
Is climate change the next big investment theme?
Investors looking to outperform the market are being urged to look at structural growth, with climate change likely to create the biggest investment opportunity since the internet, an industry expert ...Read more
Stock market
All Ords set for new record by February, analyst predicts
The Australian market is likely to reach a new record in the early months of the year, with a win on the health front likely to offset geopolitical issues, an analyst has stated. ...Read more
Stock market
Aussies flock to fixed interest and ETP products for stable returns
Investors seeking stability during the COVID-19 pandemic have turned to fixed interest and cash exchange-traded products, new research has revealed. ...Read more
Stock market
Emerging market equities gain traction in post-pandemic world
Emerging market equities are making a comeback as technology-savvy consumers flock to capitalise on new opportunities that the 2020 pandemic may have made too attractive to ignore. ...Read more
Stock market
Is it too late to start investing in market index ETFs?
With the Australian market recovering its losses since the pandemic began, nestegg asked an industry expert if it was too late for investors to begin their investing journey. ...Read more
Stock market
Is it time to buy reopening stocks?
Investors are being advised to look into stocks that could benefit from markets reopening, an analyst has stated. ...Read more
Stock market
Stocks to watch in 2021
Easing political uncertainty, new vaccine hopes, central bank’s willingness to do all it takes and more, and new stimulus packages are likely to act as tailwinds for investors, an analyst has said. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
