According to CommSec data, the number of first time traders more than doubled since February 2020 (18 per cent compared to 8 per cent pre-COVID 19). The majority of these new CommSec customers (83 per cent) were under 44 years of age – a 17 per cent increase compared with pre-COVID trends.
First time traders contributed around 10 per cent of total trades since February 2020, compared with 4 per cent before COVID.
In response to more investors entering the market, CommSec is launching CommSec Learn, a series of free, bite sized learning topics with videos and exercises designed to help investors steadily expand their knowledge at their own pace.
It features credible, expert content covering the basics and the ‘how to’s’ of setting investment goals, building an investment strategy, analysing performance and managing risk. New topics will be added over time to help more experienced investors take their knowledge to the next level.
CommSec Executive General Manager, Richard Burns, said: “We saw a huge consumption of our educational materials when COVID hit. There was a thirst for learning, however, it was interestingly leaning towards more executional topics with fewer clicks on the important basics such as planning or strategising. As such, we felt there was an opportunity to help build those important investment foundations and assist investors in hopefully achieving long term success.
“CommSec Learn is an easy way for investors to grow their skills and knowledge, at their own pace, in order to make informed investment decisions. No matter how experienced an investor is, you can never stop learning when it comes to investing.”
CommSec Learn is not intended to offer personal advice or recommendations, instead it is designed to help investors get a better understanding of their investments and the factors that can affect their performance.
“It’s helpful to think of investing as just the beginning of your share market journey. It’s important to regularly monitor the markets and your portfolio, and understand your risk appetite. Knowing how to keep track of your progress and how you stack up against key benchmarks is essential for understanding how your investment is performing and whether you may need to rebalance your portfolio. Taking the time to learn about each of these topics is perhaps the best investment you can make.
“Regardless of how CommSec customers choose to invest, we strongly encourage all retail investors, and particularly new investors, to remain vigilant. It's never been more important to get your information from a variety of sources and diversify your investments, as volatility is likely to continue,” said Richard Burns.
For more information and to access a range of free sources visit commsec.com.au/commseclearn
CommSec Learn is intended to provide general information of an educational nature only. It does not have regard to the financial situation or needs of any reader and must not be relied upon as financial product advice. Investors should consult a range of resources, and if necessary, seek professional advice, before making investment decisions in regard to their objectives, financial and taxation situations and needs because these have not been taken into account. Any securities or prices used in the examples given are for illustrative purposes only and should not be considered as a recommendation to buy, sell or hold. Past performance is not indicative of future performance. Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of the Commonwealth Bank of Australia ABN 48 123 123 124 AFSL 234945 and a market participant of the ASX & Chi-X Australia, a clearing participant of ASX Clear Pty Limited and a settlement participant of ASX Settlement Pty Limited.