Speaking at the Stockbrokers and Investment Advisers Association (SIAA) conference in Sydney, Candice Bourke, senior investment adviser at Shaw & Partners, said there were certain topics which resonated with the next generation including thematic, ethical and social impact funds.
However, there were still non-negotiables on how firms could structure their proposition if they wanted to reach this market.
“They need to be user-friendly, tech-friendly and cost-effective, they want certainty and liquidity as they might be suffering PTSD from having invested in cryptocurrency or other highly volatile assets in the past or they might have FOMO from having missed out on investments.”
Many younger people had invested in cryptocurrency either because they saw it on social media or their friends were invested or they were seeking higher returns in a low-rate market environment. However, many cryptos had fallen significantly in the past week which was leaving investors burnt.
“[Younger investors] are actually a lot more conservative in how they act than we would think. A good idea would be to offer a basket of assets and then narrow it down based on their preferences.”
Jessica Leung, assistant portfolio manager at BetaShares, said younger investors liked investing in exchange traded funds (ETFs) as they were more diverse and transparent than other assets.
“They are priced out of property so are looking at other ways they can generate wealth. We have seen an increasing number of younger investors buying ETFs, particularly younger and female investors. They want to see exactly what they are investing in and they want to align their value with their investment.”
Bourke also said it was worthwhile that this generation sought out a human relationship who would help them on their journey.
“They should seek a personal relationship, they need someone who can guide them through the market, who can hold them accountable and can keep them on track to meet their goals and objectives.”
