When they’re fearful, be greedy: Half a million Aussie investors get bolder
Australian investors are taking the opportunity to buy low, according to new research from Finder.
A Finder survey of 1,001 people found that 7% of investors* are investing more adventurously than they were 6 months ago – equivalent to just over 500,000 people.
More than half (57%) say their investing strategy has not changed, while 36% are investing more cautiously.
Kylie Purcell, share trading expert at Finder, said seasoned experts might not waiver in their strategy, but new investors are more vulnerable to fearmongering.
"Investing in shares during a market downturn can be daunting, especially for people with more aggressive portfolios or who have high-growth super funds.
"For many young investors, in particular, this may be their first experience of a market downturn," Purcell said.
Finder's research shows generation Z investors (13%) are the most likely to defy the downturn with bold investments, followed by millennials (10%).
That said, the younger generations are also the most likely to have turned down the heat, with 50% of generation Z and 37% of millennials admitting they are investing more cautiously.
Just over a third of generation Z investors (37%) have maintained their investing strategy, compared to 73% of baby boomers and 59% of generation X.
The average investor has approximately $39,500 invested in the stock market, according to Finder's Consumer Sentiment Tracker.
Purcell said those trading more aggressively may be viewing the downturn as a buying opportunity while prices are low.
"Warren Buffet said that it is wise for investors to be 'fearful when others are greedy, and greedy when others are fearful'.
"We saw similar movements during the 2020 market crash, when trade volumes soared well above average.
"In this case, the correction is much slower, so people are likely more cautious about taking action. With interest rates continuing to climb, it's unclear when the market will bottom," Purcell said.
Male investors (8%) are more likely than their female counterparts (6%) to be investing more aggressively than they were 6 months ago.
Finder Share Trading Customer Satisfaction Awards
Finder worked with leading insights company Dynata to survey nearly 20,000 Aussies across almost 200 categories.
Customers of major share trading platforms rated their provider on 5 key categories: customer service, fees, tools and features, overall experience and recommendation scores.
Purcell said the award winners are a great place to start for those looking for high-quality, feature-packed trading accounts.
"Bell Direct took the top spot in Finder's Share Trading Customer Satisfaction award due to its outstanding scores in customer service and low fees. A whopping 91% of users surveyed said they would recommend Bell Direct to a friend.
"Online investment platform Superhero and online trading platform Selfwealth were listed as finalists on the strength of their tools and features and low fees.
"There isn't necessarily a 'best' trading platform for everyone, but there is a best trading platform for you based on what you want to trade and the tools you want to use."
| Best rated share trading platforms for 2022 | |
|---|---|
| Winner | Bell Direct |
| Australian broker Bell Direct took the top spot in Finder’s Share Trading Customer Satisfaction award after 91% of its users that were surveyed said they would recommend the broker to a friend. Overall, its customer satisfaction rating was 4.43 out of 5. | |
| Finalist | Superhero |
| Runner-up was online investment platform Superhero, earning itself a place as a finalist in our 2022 awards. According to its customers that Finder surveyed, 92% would recommend it to a friend. Overall, Superhero scored 4.35 out of 5. | |
| Finalist | Selfwealth |
| In third place was Selfwealth, also earning itself a spot as a finalist in Finder’s awards. It also has a customer satisfaction rating of 92% among those surveyed and overall received 4.30 out of 5. |
You can find the award logos here.
| Compared to 6 months ago, are you investing more conservatively or more adventurously? | |
|---|---|
| About the same | 57% |
| More conservatively (lower risk, lower return) | 36% |
| More adventurously (higher risk, higher return) | 7% |
| *Source: Finder survey of 1,001 respondents, 387 of which are investors, June 2022 |
For more on the 2022 winners and methodology, visit Finder's Share Trading Customer Satisfaction Awards 2022 page.