The French investment space is experiencing new trends
that are driving younger and more active investors into the market. This is
according to a study that revealed that 40% of French investors made their
first investment in the last four years.
The study by the AMF and OECD also highlighted the
rise of independent, self-directed investors. This new trend points to a shift
from traditional assets towards more innovative options, including ETFs,
crypto-assets, and crowdfunding.
A New Wave of Investors
According to the study, 24% of French people identify
as independent and active investors. These investors take control of their
portfolios, opting not to delegate management. This group is predominantly
male, younger, and hails from higher socio-economic backgrounds.
Interestingly, over half of these investors entered
the markets within the past four years, with a growing number under the age of
35 choosing ETFs as their preferred investment vehicle.
The study also disclosed that investment practices are
evolving beyond traditional shares and bonds. Only 18% of investors hold only
listed shares, while many prefer to diversify, holding multiple products such
as funds, open-end investment companies, crypto-assets, and crowdfunding
securities.
Exchange-traded Funds (ETFs) have rapidly gained
popularity in France, particularly among younger investors. Half of the
investors in ETFs have invested less than €10,000, with a focus on medium- to
long-term equity and sustainable ETFs.
The appeal of ETFs lies in their ability to provide
diversified exposure to different markets and sectors at a lower cost compared
to traditional mutual funds. Furthermore, 60% of ETF investors are choosing to
spread their investments across multiple markets, reflecting an appetite for
global exposure.
Social media platforms, including YouTube and
Instagram, have become pivotal in shaping the opinions of younger investors,
while older generations prefer more traditional media outlets that cover the
stock market.
Crowdfunding platforms have also seen increased
participation, especially among middle-aged investors (35-49). These investors
tend to look for alternative investment opportunities beyond listed shares.
Real estate projects and local community ventures are particularly popular.
Crypto Assets
While still not as widely held, crypto-assets are
also making inroads. Younger investors are more open to these digital assets,
seeing them as high-risk but high-reward opportunities.
For many, investing in crypto offers a way to
diversify portfolios and access potential gains outside the scope of
traditional markets.
The rise of technology has made investing more
accessible than ever. Three-quarters of investors log into their investment
accounts at least once a week, and smartphones are the primary devices for
managing portfolios.
Fractional investments and copy-trading, where
investors replicate the trades of others, are becoming increasingly popular,
providing new ways for inexperienced or smaller investors to engage with the
market.
The French investment space is experiencing new trends
that are driving younger and more active investors into the market. This is
according to a study that revealed that 40% of French investors made their
first investment in the last four years.
The study by the AMF and OECD also highlighted the
rise of independent, self-directed investors. This new trend points to a shift
from traditional assets towards more innovative options, including ETFs,
crypto-assets, and crowdfunding.
A New Wave of Investors
According to the study, 24% of French people identify
as independent and active investors. These investors take control of their
portfolios, opting not to delegate management. This group is predominantly
male, younger, and hails from higher socio-economic backgrounds.
Interestingly, over half of these investors entered
the markets within the past four years, with a growing number under the age of
35 choosing ETFs as their preferred investment vehicle.
The study also disclosed that investment practices are
evolving beyond traditional shares and bonds. Only 18% of investors hold only
listed shares, while many prefer to diversify, holding multiple products such
as funds, open-end investment companies, crypto-assets, and crowdfunding
securities.
Exchange-traded Funds (ETFs) have rapidly gained
popularity in France, particularly among younger investors. Half of the
investors in ETFs have invested less than €10,000, with a focus on medium- to
long-term equity and sustainable ETFs.
The appeal of ETFs lies in their ability to provide
diversified exposure to different markets and sectors at a lower cost compared
to traditional mutual funds. Furthermore, 60% of ETF investors are choosing to
spread their investments across multiple markets, reflecting an appetite for
global exposure.
Social media platforms, including YouTube and
Instagram, have become pivotal in shaping the opinions of younger investors,
while older generations prefer more traditional media outlets that cover the
stock market.
Crowdfunding platforms have also seen increased
participation, especially among middle-aged investors (35-49). These investors
tend to look for alternative investment opportunities beyond listed shares.
Real estate projects and local community ventures are particularly popular.
Crypto Assets
While still not as widely held, crypto-assets are
also making inroads. Younger investors are more open to these digital assets,
seeing them as high-risk but high-reward opportunities.
For many, investing in crypto offers a way to
diversify portfolios and access potential gains outside the scope of
traditional markets.
The rise of technology has made investing more
accessible than ever. Three-quarters of investors log into their investment
accounts at least once a week, and smartphones are the primary devices for
managing portfolios.
Fractional investments and copy-trading, where
investors replicate the trades of others, are becoming increasingly popular,
providing new ways for inexperienced or smaller investors to engage with the
market.
This post is originally published on FINANCEMAGNATES.
