An Online Investing Report published by Investment Trends showed that young investors in Australia are increasingly adopting innovative products offered by emerging investment platforms in the country.
The leading financial investment firm revealed that millennials are taking over the online investment space. The report also noted that the number of online investors increased by nearly 21.6% in H1 2021 compared to a growth of 66.6% the previous year.
Young Investors Take Center Stage
The dormancy rate increased while strong growth was seen in the number of both reactivated investors and new investors.
But the real players in the industry and the dormant forces are Generation Z and millennials. They are in the majority when it comes to those seeking new investment opportunities in the online space.
According to the report, the main drivers of this current trend in Australia are access to global markets, low brokerage fees, and digital offerings these have been the main drivers for the adoption of online investment opportunities among millennials, the report noted.
The Head of Research at Investment Trends, Irene Guiamatsia, commented on the report. “It is encouraging to see online investor numbers continue to climb in the second half of the year,” he said. Another observation in the report is the fact that other regions of the world are also experiencing similar growth in online investment. However, the growth in Australia is slightly higher than what is obtainable globally. While the growth in the US is observed to be 16%, the level in Australia has hit 21% and continues to increase.
Fractional Investing Also Soars
The Australian financial market is one of the most stable in the world. The country offers a friendly environment for digital investment platforms and top financial brokerage firms around the world. Many of the firms have already established themselves in Australia, as the market continues to grow.
The past few months have also seen considerable growth in fractional investing, as the overall growth in online investment platforms keeps expanding. The report is an indication that the young investors have quickly embraced the innovative products of most of these emerging platforms. Many of them have also shown a positive response to the introduction of features like fractional shares, Guiamatsia added.
