Specialist
20% of consumers do not closely monitor the performance of their investments while 16% do not understand the fees and taxes they needed to pay for their investments.
Younger people in Ireland are more likely to invest in cryptocurrencies, invest online and use informal information sources when investing according to a new survey published today by Banking & Payments Federation Ireland (BPFI).
The findings, which show that one in three adults in Ireland have some form of investment, also reveals that one in five younger people hold cryptocurrencies such as bitcoin or Ethereum.
Concerningly, the survey also highlights that one in five consumers who hold investments (20%) said they did not closely monitor their investments with 16% indicating they did not understand the fees and taxes they needed to pay for their investments.
Key findings from the survey show:
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One in three adults in Ireland have an investment product (excluding pensions or their own home) while a third of those without investments say they have no interest in doing so.#
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Men are much more likely to hold investments (44%) than women (26%).
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The main types of investment are stocks or shares (held by 15% of adults), investment funds (11%), government or corporate bonds (8%) and cryptocurrencies (8%).
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Cryptocurrencies are most likely to be held by 18-34 year olds (16%) compared to only 3% of over 55s.
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Investment funds and government or corporate bonds appeal most to those aged over 55: 17% and 12%, respectively. Stocks and shares appeal to all age groups.
While 78% of investors across all age groups describe their approach to making financial and investment decisions as conservative or very conservative, one in five (16%) indicated they did not understand the fees and charges involved in investing while a similar proportion (20%) indicated they did not monitor their investments closely.
60% of under 35s prefer to invest online rather than in person or by phone – compared to 14% of over 55s.
Similarly, 32% of under 35s said they would use friends/family for information on making an investment, compared with 16% of over 55s; while 23% would look to online sources such as social media or blogs, compared with 5% of over 55s. Overall, advisors in brokers or banks/investment companies were the most used sources at 38% and 35%, respectively.
Speaking on the publication of the survey Brian Hayes, Chief Executive, BPFI said: “Today’s survey results point to generational differences in investment behaviour among consumers in Ireland with younger people more likely to invest in cryptocurrencies and invest online than older cohorts. Under 35s are also more likely to seek information through informal channels such social media or friends and family.”
“Across all age categories however, we see that Irish investors are conservative in their approach to financial and investment decisions with most considering the level of risk involved and the expected return as the most important factors when considering where to invest. However, it is a cause for concern that one in five investors indicated that they did not closely monitor the performance of their investment and 16% indicated they did not understand the fees and taxes they needed to pay for their investments.”
“Investment products can offer a good opportunity to grow your money in the longer term but as investment options continue to diversify it is important make informed decisions, understand the product and monitor its progress. In the digital era, there are multiple sources of advice and information which can be helpful but consumers should consider balancing this with professional advice through your bank or broker, not only to help mitigate risk, but also identify the wide range of opportunities that best meet their needs and means.”
The survey was conducted by Amárach Research on behalf of BPFI in April 2023