Young investors remain positive as they hunt for income
The Share Centre has revealed the characteristics of current UK based young investors, including insight into the portfolio and the attitudes of the new generation of investors.
The research examines the portfolios of investors over the age of 18 with over £10,000 actively invested in the market and shows that
Investors aged under 25 are more positive about the stock market than their counterparts aged over 55 (51% positive vs. 30% positive)
Despite their relative inexperience, under 25 year olds are more likely to have a specific investing outcome in mind than investors aged over 55
16% of the investors under 25 have more than £50,000 actively invested in the market, and 56% have over £20,000
Young investors are considerably more likely to have a portfolio diversified across a range of products than over 55's, who primarily stick with equities
Young investors are feeling sunny about the outlook for the stock market. 58% of investors under 35 are currently positive or very positive about the stock market, against just 34% of over 35's. In fact, the older the investor, the less positive they, with just 30% of over 55's feeling any positivity, and 31% feeling somewhat or very negative.
This positivity also stretches to their wider economic outlook. The research shows that while older investors feel jaded towards the European and global economies, younger investors remain positive. 42% of investors under 25 feel somewhat or very positive towards the European economy, versus a tiny 5% of investors over the age of 55. This trend continues in their sentiment towards the global economy, where 42% of under 25's feel somewhat or very positive , while just 11% of over 55's share the same feeling.
Interestingly, younger investors are more likely to invest for income than older investors. When asked by The Share Centre to clarify their primary investment objective, 24% of under 25's cited income, as opposed to just 16% of over 55's.
Under 35's are also the most likely to drip feed into investments, rather than investing via ad-hoc lump sums. 53% of investors under 35 drip-feed small sums of money into their investments, versus 29% of investors over that age.
The research quizzed investors with over £10,000 actively invested in the markets. As might be expected, the amount invested proportionately grows with age, as older investors gather a lump sum ahead of retirement. Despite this, the research reveals that even young investors have sizeable amounts; 16% of young investors have over £50,000 invested, and 55% have over £20,000 invested.
Young investors also have a more diversified portfolio when it comes to products. The Share Centre research reveals that while 78% of investors over 55 put money into equities, and only 2% into ETFs/ ETCs, younger investors have a more diversified approach.
Graham Spooner, Investment Research Analyst at The Share Centre, commented: "The research paints a positive picture for the future of investing in the UK. It's surprising to see that young people are looking for income from their investments when you would imagine them to be seeking growth. We have found young investors tend to be more experimental, exploring new investment opportunities whereas some older investors do tend to shy away from them.
"What's clear is that young investors are happy to look more broadly at a range of products, and they feel positive about the future. At The Share Centre we work with a wide range of younger investors who come to us looking to have an active involvement with the stock market. Many are doing very well, and achieving their investment objectives. What we're seeing is that when it comes to investing age really is just a number, and investors across the board can be successful, however experienced they are."