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Commonwealth Bank media release

THE RISE OF THE GEN Y RETAIL SHARE INVESTOR

  • Gen Ys (25-34 years) are a growing group of new investors in the sharemarket.
  • Over a third (33 per cent) of adult Australians hold shares directly.
  • 5 per cent of the Australian population now directly owns international shares.

Generation Y investors are a growing proportion of new direct investors in the sharemarket compared to 20 years ago, CommSec analysis has found.

To mark its 20 year anniversary, Australia’s largest retail share trading platform, CommSec, has undertaken a review of share trading and economic developments in Australia over the last two decades.

The analysis shows investors are entering the sharemarket at an earlier age with 28 per cent of 25-34 year olds now directly owning shares, and at CommSec there is an increasing proportion of young people becoming new investors.

Paul Rayson, Managing Director, CommSec, said: "Twenty years ago the majority of investors in the market were aged in their late 40s to 50s. The emergence of online broking has made the sharemarket more accessible and affordable to younger investors.

"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.

"This shift in age demographic is a striking feature of a change in consumer behaviour looking back over the past 20 years. It demonstrates how younger people have embraced technology and become more self-directed in their approach to financial decision-making."

This shift has also translated into a growing usage of mobile devices for investing. According to research from Investment Trends, 60 per cent of current online investors use a mobile device to monitor the market, trade shares and transfer funds.

"In CommSec, we have seen trading via mobile devices experience rapid growth over the past 12-18 months. Around 25 per cent of logins and 13 per cent of daily trades are now performed on mobile devices," said Mr Rayson.

A customer survey conducted as part of the 20 year anniversary found that the reasons people joined CommSec two decades ago are largely still the reasons they use the platform today.

Both then and now, key reasons for using the platform are ‘making trading easy’, ‘value for money’, and ‘CommSec being part of the Commonwealth Bank’.

Investors still remain relatively cautious by ensuring their holdings are diversified across various sectors and today this extends beyond domestic share ownership, with 5 per cent of the Australian population now owning international shares.

Overall, 33 per cent of Australians over the age of 18 (an estimated 5.94 million people) now hold shares directly compared to 16 per cent or 1.98 million Australians in 1994. Of the Australian adult population, share ownership by women has also increased to 27 per cent and for males it is 38 per cent.

If you would like to view the economic analysis by CommSec please visit www.commsec.com.au/20years.

 

- ENDS -

Information Sources

The Australian Share Ownership Study, ASX, 1994; The Australian Share Ownership Study, ASX, 2014; Investment Trends 2015 First Half Australia Online Broking Report, and CommSec data on file.

This media release is approved and distributed in Australia by Commonwealth Securities Limited ABN 60 067 254 399, AFSL 238814 (CommSec) a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124, AFSL 234945 (the Bank).  This economic report does not provide a recommendation to buy, sell or hold any securities, property, real estate or financial products, and has been prepared without taking account of the objectives, financial or taxation situation or needs of any particular individual.  For this reason, any individual should, before acting on the information in this report, consider the appropriateness of the information, having regard to the individual's objectives, financial or taxation situation and needs and, if necessary, seek appropriate professional advice.  Past performance, economic or otherwise, is not a reliable indicator of future performance. This report is produced by Commonwealth Securities Limited based on information available at the time of publishing.  We believe that the information in this correspondence is correct and any opinions, conclusions or recommendations are reasonably held or made as at the time of its compilation, but no warranty is made as to accuracy, reliability or completeness.  To the extent permitted by law, neither the Bank nor any of its subsidiaries accept liability to any person for loss or damage arising from the use of this media release.

For media inquiries, please contact: 

Amanda Boswell
Ph: 0455 070 027
amanda.boswell@cba.com.au                         

Commonwealth Bank Media
Ph: +61 2 9118 6919
media@cba.com.au