TECHNOLOGY PAVES WAY FOR GEN Y INVESTORS
28 July 2015,
MORE generation Y investors are choosing to invest in the sharemarket compared to 20 years ago, according to CommSec.
The stockbroking firm analysed share trading and economic trends over the last two decades, as part of its 20 year anniversary.
Data shows investors are entering the sharemarket at an earlier age with 28 per cent of 25 to 34 year olds now owning shares, with the number continuing to rise.
CommSec managing director Paul Rayson says online broking has made it cheaper and easier for younger people to buy shares.
"Twenty years ago the majority of investors in the market were aged in their late 40s to 50s," Rayson says.
"Our review shows that in 1995 only around 1 in 5 new investors using our platform were aged under 35. Now just over half of our new customer base is aged under 35.
"It demonstrates how younger people have embraced technology and become more self-directed in their approach to financial decision-making."
The technological shift is also reflected in growing usage of mobile devices for investing, with 60 per cent of investors using their phone to monitor their portfolio.
About 25 per cent of CommSec logins and 13 per cent of daily trades are now completed on mobile devices.
Investors still remain relatively cautious by not favouring a particular sector, and only 5 per cent of the population own international shares.
About a third of Australians over the age of 18 own shares at 33 per cent, in comparison to 16 per cent of Australians in 1994. Share ownership by women has also increased to 27 per cent, with men at 38 per cent.