Over a quarter of Australians (27%) now invest in the share market, with 10% investing in exchange traded funds (ETFs) and 6% investing in foreign exchange assets, according to research from Finder.
The survey was conducted with a sample of 1,004 respondents which found 66% had some level of investments other than property, an estimated 12.8 million Australians.
Around 13% had their money in a term deposit, while 44% still used a cash savings account; robo-advisers were also used by 2%
Kate Browne, Finder personal finance expert, said Australians wanted to build their fortunes and weren’t prepared to rely solely on their income to do so.
“It’s a broad spectrum – from those investors who just want to maximise savings to those who are striving for financial freedom,” Browne said.
“Low savings interest rates have also driven more people into the share market as they seek to make a profitable return on their investments.
“No matter the goal – it’s clear there’s interest in a vast array of different investment options – all with different levels of risk and potential returns.”
However, there was a gender gap as 73% of men had involvement in investing, compared to only 60% of women.
Browne said assets could provide security if investors experienced income losses or a financial emergency, but that they should have enough cash in an emergency fund and invest wisely.
“Uncertainty driven by the Coronavirus outbreak has caused a lot of people to want to build their earnings through investments,” Browne said.
“If you don’t have any money left at the end of month to invest with – the first step might be to reduce spending through various forms of frugality.”
