Australian investors are looking for capital growth in direct shares, exchange traded funds (ETFs), and increasingly cryptocurrencies, according to Investment Trends.
The research house’s latest report found investors were optimistic and were less concerned about share market volatility but increasingly worried about the economic slowdown (47%, up 21% the year prior), property prices (28% up from 15%), inflation (25% up from 11%), and interest rates (24% up from 4%).
The report also found that investors were looking for more content from product issuers and distributors on past performance, new investment opportunities, and the future outlook.
Investment Trends head of research, Irene Guiamatsia, said: “Australian investors remain strongly bullish on domestic equities despite the dizzying highs reached in 2021.
“More than a third see domestic equities as the number one asset type for generating yield in the current low-rate environment, followed by international equities and property.”
Over the past year, the research found the typical portfolio was lighter on cash related investments, direct shares and managed funds but had increasing exposure to property and ETFs.
“The growth in ETFs and cryptocurrency has been manifested by both higher adoption levels (more investors are using) and higher portfolio allocation (users are placing more money in these assets),” Guiamatsia said.
"There is also a strong environmental, social and governance [ESG] thematic overlaying these changing trends in investor behaviour - close to one in two investors report considering ESG principles as part of their decision making during the reporting period.
“Looking ahead, investors plan to stick to what they perceive to be the winning formula in their quest for capital growth – direct shares, ETFs and increasingly, cryptocurrencies.”