Direct share ownership takes a dive
The proportion of Australians with direct share holdings dropped for the first time in two years, a survey has found.
The proportion of Australians with direct share holdings dropped for the first time in two years, a survey has found.
Less than 30 per cent of people surveyed in the latest Melbourne Institute/ Mercantile Mutual household savings report say they hold shares. This compares with 34 per cent in the previous quarter and 31 per cent for the same time last year.
Mercantile Mutual Funds Management general manager Ross Bowden attributes the downturn to market volatility.
"The shake-out in sharemarkets in April has taken some shine off shares as a direct investment," he says.
The survey, which aims to provide an analysis of household savings, found that just over half of the survey respondents had deposits in banks, compared with 63.4 per cent two years ago.
And Australians do not favour banks or bank-like institutions as a destination for new savings, the survey found. Investing in real estate is the most popular destination for new savings.
In general, households were continuing to take advantage of strong economic conditions and were pushing ahead in greater numbers to reduce debt, the survey found.
Credit card debt, the most common form of debt amongst households in the previous quarter, dropped to 29 per cent compared with 35 per cent in the last survey.
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