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
Volatility in US markets means currency is becoming a critical decision factor in Australian investors’ ETF selection this year.
Clime Investment Management is overhauling the selection process for its APLs, with managing director Michael Baragwanath describing the threat of a product failure affecting clients as “pure nightmare fuel”.
Global X will expand its ETF range of exchange-traded funds next month with a low-cost Australian equity product as it chases ambitions of becoming a top issuer of ETFs in Australia.
Flows into Australasian sustainable funds have moved back into outflow territory in the second quarter of 2025 driven by US$400 million in redemptions from passive funds.
