The percentage of the French population intending to invest in equities in the next 12 months has fallen as their confidence in the economic and financial environment also waned, according to new research.
The sixth edition of the Savings and Investment Barometer of the Autorité des Marchés Financiers (AMF) revealed that the proportion of French people who say they are “rather” or “very confident” about their economic and financial situation over the coming year has dropped by 10 points, to 24%.
Following a sharp increase in 2021, French people’s intentions to invest in equities over the next 12 months slumped by six points to 19% – a level last seen in 2019 – with the decline mainly among the more cautious over-55s (12%).
Under 25s remain the most enthusiastic age group, at 30%, while 29% of those aged 25 to 34 intend to invest.
Overall, individual shareholders are more optimistic, with 56% ready to invest in the next 12 months.
Meanwhile, the French population’s interest in investing in equities, either directly or through funds, declined by four points from 2021 to 25% this year.
However, the AMF found that interest remains high among those holding directly listed shares, at 69%.
Most respondents, seven out of 10, believe that equity investments are reserved “for people who know enough about them”.
The Barometer, the findings of which are based on a survey conducted by the Audirep Institute among 2,000 French people, found that the population, as a whole, remains largely optimistic about the profitability of investing in the stock market, with 47% believing that investing in stocks has been somewhat, moderately or very profitable over the past five years.
However, the share of respondents who believe that “it is not a good time to invest in stocks” has risen from 26% to 34% in one year. Those who own stocks remain more optimistic, with 31% saying it is a good investment time.
Marie-Anne Barbat-Layan, chair of the AMF, said: “The French’s lower appetite for equities investments can be explained by a more uncertain economic climate, which reinforces risk aversion.
“These developments, along with the increasing importance of scam offerings, underlines the importance for the AMF to continue its educational efforts in order to support retail investors and give them the keys to invest and diversify their savings over the long term.”
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