Australian investor confidence holding steady
Australians are weathering current market volatility well, with confidence steady and strong appetite for new asset classes and better education, according to the latest research by new digital investment platform Syfe.
The Syfe Investor Pulse 2022 polled over 1,000 Australian respondents, from 25 to 45 years of age, in July 2022.
When looking at investment goals against the current inflationary and higher interest rate environment, 58% of respondents remained confident they would still achieve their goals, though 40% said perhaps not within the timeframe initially planned. Additionally, 16% of investors said they were looking to add more defensive assets such as bonds, while 12% were planning to invest in more aggressive, high-risk assets.
The research indicated that the make-up of the Australian retail investment landscape was also changing, alongside the adoption of a more long-term view, with 74% of respondents investing for ten years or less and 51% entering the market in the past five years.
Adoption of crypto was set to continue, with 41% already invested and 41% either remaining comfortable (26%) or feeling more confident (15%) investing in this asset class, despite recent volatility. In fact, the research revealed that crypto (34%) is now on par with property as a future investment vehicle (34%) and, alongside demand for international shares and ETFs, is outpacing more traditional investments.
Syfe general manager and country head of Australia, Tim Wallace, said: “While the prevailing wisdom is that the market is saturated and that economic indicators are dampening investor sentiment, the research results reinforce our belief that Australian investors are resilient and firmly focused on financial security.
“They are seeking to grow their knowledge and tap into diversified investment offerings like international shares and crypto in order to build for the longer term.”
The research revealed that investors’ top goals were to achieve financial security (39%) and to build their wealth for the long term (24%). Lack of disposable income and inertia brought on by time constraints and a lack of access to information remained the biggest impediments to long-term wealth creation.
Syfe’s chief business officer, Samantha Horton, said the platform’s entry into the Australian market offered a key point of differentiation for investors, compared to other platforms that focus on short-term returns and a fast approach to investing.
“Our aim is to be the long-term partner of choice for Australian retail investors,” Horton said.
“We see a huge opportunity in Australia to offer investors an all-in-one platform that will grow with them, offering quality insights and educational tools at a fraction of the cost that traditional institutions charge.”
AUTHOR
Liam Cormican
Recommended for you
Clime Investment Management has faced shareholder backlash around “unsatisfactory” financial results and is enacting cost reductions to return the business to profitability by Q1 2025.
Amid a growing appetite for alternatives, investment executives have shared questions advisers should consider when selecting a private markets product compared to their listed counterparts.
Chief executive Maria Lykouras is set to exit JBWere as the bank confirms it is “evolving” its operations for high-net-worth clients.
Bennelong Funds Management chief executive John Burke has told Money Management that the firm is seeking to invest in boutiques in two specific asset classes as it identifies gaps in its product range.
