Invest
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found.
Lockdowns instigate a rise in new investors
Despite COVID-19 leaving individuals and businesses to face an uncertain future, retail investors’ appetites for shares have increased throughout the pandemic, a new report has found.
Research released by Calastone, which builds on investor surveys conducted before and during the pandemic has shown that investors around the world are increasing their exposures despite an uncertain future.
Overall, comparison of the 2021 and 2020 results revealed a marked increase in investment appetite and activity as a direct result of COVID-19.
Although 75 per cent of Millennials surveyed globally said they had invested or would invest soon, only 7 per cent have actually made the move.
Instead, the older generations are leading the charge, with 52 per cent of Generation X admitting they have made an investment in light of COVID-19, a rise of 18 per cent since 2020.
Baby Boomers followed, showing an 11 per cent rise in active investments in light of the pandemic. The lift for Millennials was less pronounced at 7 per cent.
“Calastone’s research shows that COVID-19 and its implications for people and markets have continued to be a tailwind for investment in managed funds,” Calastone head of Australia and New Zealand Ross Fox said.
Driving the market change
According to the results, investors are actually embracing the uncertainty and volatility that comes with a distorted market.
Calastone said that a good deal of the shift in investor behaviour reflects a mix of pent-up demand, growing confidence in the economic outlook and an increased appreciation of financial security.
Moreover, Calastone revealed that 32 percent of participants surveyed from the UK, US, Australia, New Zealand, Hong Kong and Germany are more likely to invest in light of the current COVID-19 situation, and 42 percent have already done so as a direct consequence of the virus.
“Investors adopting a more proactive and opportunistic approach is also evident in the flow of funds that we continue to see across our network, with $10.2 billion flowing into Australian-based managed funds this year,” Calastone’s head of Australia and New Zealand Ross Fox said.
Apprehension remains
While many investors are taking the leap, anxiety still remains a strong factor as the world grapples with the pandemic.
Levels of anxiety have abated for Australian and New Zealand investors, though they are still high; 66 per cent of Australians and 62 per cent of New Zealanders said COVID-19 has made them more worried about their financial future, down respectively from 72 and 64 per cent in 2020.
“While Australia currently feels the weight of COVID while other parts of the world appear to be recovering from the pandemic, rising levels of local engagement, ease of investing and product knowledge is a testament to the efforts of fund managers and distributors who have kept investors well informed and engaged throughout the last 18 months,” Mr Fox concluded.
About the author
About the author
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
Stock market
Rising inflation set to help the next super cycle for investors
Central banks around the world are largely tipped to increase interest rates over the medium term due to inflationary pressures, with investors urged to look at the upcoming growth cycles that will em...Read more
Stock market
4 international stocks all investors should be watching
With markets around the world reaching record highs after the COVID-19 lockdown, Australian investors are being urged to keep an eye on four foreign stocks tipped to outperform. ...Read more
What to expect as the end of lockdown looms? Will the Stage 2 tax cuts boost your tax return? Where should investors be looking as the economy reopens?
Listen now
Could property prices inflate by another 20%? What’s happening in recent dividend announcements? Did your fund fail the YFYS test?
Listen now
What does the NSW regional permit mean for property investors? Who really wins from the BHP-Woodside merger?
Listen now
The sea and tree-change norm; Square’s acquisition of Afterpay; Why you should think twice before turning to TikTok for advice
Listen now
Stock market
Trading app popularity skyrockets as retail sector booms
In 2021, trading has never been easier for retail investors, meaning the number of users on trading applications has exploded to an all-time high. ...Read more
Stock market
ETF rush predicted to intensify
The Australian ETF sector advanced AU$6.3 billion in August to hit a new milestone, as its popularity among financial advisers soared. ...Read more
Stock market
The 6 unique Australian market affects that all active managers can exploit
The uniqueness of the Australian equities market is providing fund managers with an opportunity to essentially beat the market, new research has revealed. ...Read more
Stock market
‘Don’t believe the hype’: ASIC warns of risks for new market participants
ASIC has expressed concern that inexperienced or uninformed investors are putting their capital at unnecessary risk when tempted into the market by questionable marketing strategies from market promot...Read more
Stock market
How do you choose the best ETFs?
In recent years, exchange-traded funds have become an increasingly popular option among Aussie investors. ...Read more
Stock market
‘Code red for humanity’ a wake-up call for private and public investment
Retail investors that have been advocating for sustainable and ESG investing are hoping a new report released by the United Nations will serve as a wake-up call to the financial industry and governmen...Read more
Stock market
Rising inflation set to help the next super cycle for investors
Central banks around the world are largely tipped to increase interest rates over the medium term due to inflationary pressures, with investors urged to look at the upcoming growth cycles that will em...Read more
Stock market
4 international stocks all investors should be watching
With markets around the world reaching record highs after the COVID-19 lockdown, Australian investors are being urged to keep an eye on four foreign stocks tipped to outperform. ...Read more
More articles
Website Notifications
Get notifications in real-time for staying up to date with content that matters to you.
