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The vast majority of online investors prefer to build their investment portfolio by investing in equities rather than property, a new report has found.
Specialist researcher Investment Trends has rolled out its 2019 1H Online Broking Report, showcasing the preferences and behaviours of Australian online equities and ETF investors.
According to the report, growing uncertainties in global and domestic equities markets have not deterred Australian online investors, with 84 per cent believing investing in such “can help them achieve their financial goals sooner”.
Further, 54 per cent view shares as a “safer bet” than property.
“Heightened stock market volatility has not dampened Australians’ interest in equities markets,” said Recep Peker, research director at Investment Trends.
“While 140,000 online investors went dormant in the last 12 months, this was offset by a strong inflow of first-time investors (50,000) and reactivated investors (80,000).
“Overall, Australian online investors are confident that domestic equities will continue to play a key role in their investment portfolio.”
Concerns on the horizon
While the majority of those surveyed are confident in investing in equities, there is some concern about the low interest rate environment.
“There is growing anxiety among Australian investors as the RBA cash rate edges ever lower and negative yielding debt in European markets swell in excess of $15 trillion,” Mr Peker explained.
“While it is unclear if negative interest rates will spread to other major markets, it is evident that Australian investors are increasingly concerned with this potential development.
“Looking forward, low interest rates will increasingly impact the investing decisions and preferences of Australian investors as they seek to preserve and grow their wealth in uncertain market conditions.”
According to the report, the majority of respondents (55 per cent) are most concerned with the US-China trade conflict as having the most impact on their investment activity.
The report also shined a spotlight on what tools online investors utilise to inform their opinions and investing decisions.
According to the results, 50 per cent utilise company reports and websites, 47 per cent use online search engines and 37 per cent opt for research provided by their main online broker.
Meanwhile, 28 per cent utilise online forums and blogs, 15 per cent utilise podcasts, 12 per cent utilise YouTube, and eight per cent utilise social media feeds.
“The breadth and depth of resources used by online investors is extensive, but certain sources are trusted more deeply than others,” said Mr Peker, commenting on the results.
“…There is strong demand for credible, transparent and timely education content, especially as market conditions become increasingly unpredictable.”