According to an ASX-Deloitte Access Economics study, the proportion of 18-24 year-olds entering the stock market has doubled from 10 per cent to 20 per cent over the past five years.
The study found they are different from older investors. They have a lower-tolerance for risk, with four in five preferring guaranteed or stable investment returns. And in keeping with their tech-savvy image, they also have a greater interest in robo-advice and other innovations.
The proportion of 25-34 year-olds investing has increased from 24 per cent to 39 per cent during the same period of time.
The study also found that 60 per cent of adult Australians, some 11.2 million people, hold investments outside their super fund. These investments are in cash, property and on-exchange investments.
Share ownership is higher among men (44 per cent) than women (31 per cent), and greater in metropolitan (40 per cent) than regional areas (32 per cent).
The study found that 48 per cent of investors rely on internet searches for information on the stock market while 45 per cent use professional financial advisers. Two in three investors don’t use professional financial advice saying that they don’t see the value in it.
And Australians have big expectations for their shares. About one in five, or 21 per cent, still expect annual returns over 10 per cent.
That’s unlikely in the current low-interest rate environment.