Retail investment has doubled during the pandemic: Investment Trends

According to researcher Investment Trends, retail investment in equities has increased by 100% during the Covid-19 pandemic, with around 1.43 million Australians making one or more transactions in listed securities in the previous 12 months. May 2021.

Irene Guiamatsia, head of investment trends research, says the shift started in early 2020 and continued through the first half of 2021.

“To put things into perspective, the number of active online retail investors, i.e. those who bought or sold securities over a 12-month period, nearly doubled from levels in before the pandemic, going from 750,000 to 1,430,000,” says Guiamatsia.

Even when lockdowns eased in late 2020 and early 2021 and people spent less time on screens, the report shows early inflows of investors remained healthy; 148,000 new online investors made their first trade in the last six months alone, compared to 170,000 in the second half of 2020.

“It’s encouraging to see so many Australians beginning their investment journey,” Guiamatsia said. “Challenging brands like SelfWealth, Stake, eToro and Superhero are expanding their footprint among these new investors with great pricing, feature-rich platforms and a mobile-first UX.”

The report also highlighted growing interest in cryptocurrencies, with the proportion of online investors who report holding cryptocurrency holdings increasing “sharply” from 8% to 13% in the past six months and 10 Additional % saying they intend to invest. in digital currencies over the next 12 months.

“The rapid rise of new cryptocurrencies like Dogecoin, whose valuation rose from $0.01 to $0.68 between January and May 2021, has certainly captured the imagination of many investors, especially Zoomers and Millennials,” Guiamatsia said.

“While investor exuberance for relatively volatile digital assets may cause concern, our research shows that diversification and long-term investing are the top reasons investors cite for holding cryptocurrencies – rather than for speculative purposes.”