Digital investment is no longer solely the realm of younger investors, research among over 4,100 retail investors in Europe and Asia showed.
Fund manager Amundi found that 66% of retail investors aged 21-30 invested at least some of their portfolio digitally and that this level fell only marginally among those aged 50-60, to 59%.
Digital engagement was quite consistent across age groups, the firm said.
Also, some 47% of investors internationally expect the proportion invested digitally to increase over the next five years – rising to 55% among those with more than €150,000 in investable assets. Amundi said evidence suggested that the growth in digital investing would be led by those with higher assets.
About two-thirds (64%) of retail investors internationally invest digitally either in whole (25%) or through a hybrid online/offline approach (39%). However, while the explosion in digital investment options over the last decade is often put down to generational behaviour shifts, the research shows that digital engagement is similarly high across all age groups and highest among the wealthiest investors, the firm said.
The research also shows that the average retail investor typically has over half (53%) of their portfolio invested digitally, without the services of an investment professional. However, investors continue to rely on qualified financial advice when making investments, with 2 in 5 respondents looking to a professional adviser when investing a sum equal to a year’s salary – almost five times more than those who would turn to social media.
The levels of digital usage are highly likely to increase over the coming five years, but although almost half of digital retail investors expected an increase in the proportion they invest digitally, this was as high as 60% among investors in Switzerland and Singapore and as low as 31% in France and 35% in Italy.
Fannie Wurtz, head of distribution & wealth division, passive business line at Amundi, said: “We are witnessing a profound and enduring transformation of our industry – intensified by rapid digitalization and demographic shifts. Decoding Digital Investment is an essential resource for our wealth and retail partners as the research provides valuable insights into the wants, needs and challenges of retail investors.”
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