Invest
Where savvy savers are investing their money
DIY investors were busy moving their money around on the stock market in December, as traditionally high performers fail to meet expectations.
Where savvy savers are investing their money
DIY investors were busy moving their money around on the stock market in December, as traditionally high performers fail to meet expectations.
Analysis from SuperConcepts – which is the largest administrator of self-managed super funds in Australia – shows DIY investors decreased their exposure to the top 10 ASX stocks from 11.9 per cent to 11.6 per cent between the June and December quarters.
The allocation to the top 10 ASX stocks has seen a significant drop from 31 March 2015 when the top 10 stocks accounted for 20 per cent of SMSF assets.
SuperConcepts national manager of technical solutions Phil LaGreca said that during the last few quarters, trustees have gradually reduced their exposure to the top 10 listed securities.
“Australia’s top 10 equities have experienced declining value in 2018 because half of the list is comprised of banks, and their bad fortunes have dragged down the entire index,” said Mr LaGreca.
The top 20 stocks, he said, underperformed at 0.05 per cent for Q3 in 2018 compared to the rest of the All Ordinaries index at 0.57 per cent.
“This has led SMSF trustees to look for opportunities in mid-caps experiencing the middle of their growth curve because they’ll generally show greater growth in profits, market share and productivity,” he said.
Future growth opportunities
Savvy investors are eyeing new growth markets at home and abroad, as traditional safe havens produce modest results.
For example, the organic food sector is providing an interesting opportunity for investors in Asian markets, as consumers become more discerning in their purchasing.
Further, some investors are eyeing future opportunities for investing in cannabis, as its legalisation in developed nations continues to grow, particularly for medicinal purposes.
Climate change is also having an impact on where investment opportunities are, and non-major banks like AMP Capital are encouraging investors to consider the headwinds it can create in certain industries.
“Some investors don’t believe in climate change and believe that any consideration of it in an investment process means sacrificing return,” Kirsten Le Mesurier of AMP Capital said.
“It should be considered as part of investment decisions,” she said.
“Not considering these impacts would mean ignoring the potential impact on share prices and investment returns,” she said.
Nestegg readers give thought to future cannabis investment.
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.
