The world of investment is evolving rapidly, with more people than ever choosing to invest their money based on their own research rather than trusting third parties with their investments.
In fact, investors put their lockdown savings to work in 2021 with approximately £43.4 billion invested in retail funds last year, making it the second best year on record for retail fund sales.
Fifty's insights team took a deeper look at who exactly these retail investors fuelling the global COVID-19 market bounce-back are. Here’s what we found:
Key Takeaways
1. Retail investment is more inclusive and diverse than ever.
2. Sustainability is a key focus.
3. They are tech native.
4. Investing is ‘cool’ for younger generations.
5. Investing is a must for successful professionals.
Keep reading for a breakdown of each of these insights! Looking for more content on other industry verticals? Check out our other blogs here.
1. Retail investment is more inclusive and diverse than ever.
Whilst the stereotypical ‘white, male, 55-70’ investor profile still exists, it is now the minority. Nowadays, we are seeing far more representation across gender, ethnicity and age. The most pronounced difference about this new generation of investors is their age, as we can see a whole new youth community has been evolving over the past two years. The rise of crypto and meme stocks has been well documented, but it is interesting to see these individuals emerging into more stable, long-term asset classes and away from boom and bust.
2. Sustainability is a key focus.
There is a clear social conscience across the retail investment community. There is a desire to invest in assets that benefit, or at least do not harm, the planet. Sustainability is a key concern here, with oil and energy stocks seemingly no longer making the cut across most portfolios. These concerns don’t just stop at their portfolio either, as we can see support for charities and generally liberal politics emerge too, highlighting a wider commitment to social and environmental causes.
3. They’re tech native.
Technology is more than just a profession for today's investors; it's a lifestyle. Digital-first lifestyles are now ubiquitous, with social media, streaming services and fintech all widely embraced and adopted. A slick mobile app is now a minimum requirement for financial institutions hoping to appeal to the new world of retail investment.
4. Investing is ‘cool’ for younger generations.
We see a wide array of young people in our analysis, but what is even more interesting is the affiliation investing seems to have to contemporary culture. It’s not just for ‘geeks’ and ‘nerds’, but seems to have strong reach into areas such as Hip-Hop and Grime music, as well as street fashion and beauty.
5. Investing is a must for successful professionals.
Millennial and Gen X Professionals is one of the most abundant audiences in our analysis. These individuals work in sectors that range from the modern worlds of Technology & IT, through to more traditional sectors such as Property and Finance. Either way, anyone who has enjoyed some professional success early in life is a prime target for retail trading platforms.
To learn more about how Fifty can help your brand reach this new generation of retail investors, get in touch with our Sales Team or book a free demo today.
