What would encourage Aussies to invest?
The ability to invest in low-risk investments and having more access to their money have been cited as the two largest factors that would encourage people to invest.
In a global study by Calastone of 1,800 people worldwide, the most-common reason (49%) cited for not investing was a lack of funds, a topic that had become even more pressing during the COVID-19 pandemic. This was followed by the belief that investing was too risky (26%) and wanting to keep money in a bank account (25%).
Australia was also the country most worried about the impact that global events would have on their investments at 18% compared to a global average of 14%.
As to what would encourage them to invest, some 39% of respondents said they would like the ability to invest in low-risk investments. This was followed by 36% who wanted easier access to their investment, a factor that had been named as a deterrent by 12% of respondents.
Other factors identified by more than 30% of respondents included more visibility, being able to invest smaller amounts and better investor education of how the system worked.
“Education is not the only factor likely to boost investor engagement; product design and features also require a rethink. Low risks are important to baby boomers but notably less so for succeeding generations. Cost, size, accessibility and visibility of investments are all more important to Generation X and millennials with product understanding again featuring for the latter group,” the report said.
Ross Fox, head of Australia and New Zealand at Calastone, said: “In today’s more self-directed market, Australians want transactional, user friendly, accessible, low cost and more transparent ways to engage as investors.
“Investment managers who can innovate, adapt and address these needs and concerns, at every point of the investment journey, will be those who can tap large pools of uninvested capital.”
AUTHOR
Laura Dew
Recommended for you
Wealth managers globally have said they are highly likely to increase their allocations to active ETFs, according to MSCI.
Perpetual has shared it is keen to expand into active ETFs, especially in the US, as it resets its asset management distribution strategy.
GCQ Funds Management has become the latest Australian fund manager to enter the ETF space with the active GCQ Global Equities Complex ETF.
A new ETF from Pinnacle affiliate Coolabah Capital Investments has hit the market, seeking to generate higher income than other traditional fixed income investments.
