Women, Generation Z and Millennials are leading a drive in investing, with UK investors overtaking the rest of Europe as people seek higher returns for their savings.
While purse strings remain tight for many across the country, some 3.5million have taken to investing in the past year in the UK alone, with a total 11million having begun investing in Europe overall, according to research by BlackRock.
The surge in investing has been driven by an increase in younger people committing their money into financial markets, with 30 per cent more 25 to 34-year-olds starting to invest over the past 12 months.
Women driving growth: There has been a surge of 32% in UK female investors in the last year
In the rest of Europe, there has been an increase of just 13 per cent among 25 to 34-year-olds.
The number of those in the UK aged between 18 and 25 who started to invest grew by 16 per cent.
As a result of the increase among younger people, Gen Z and Millennial investors account for just under a third, or 28 per cent, of UK investors.
In the coming year, BlackRock said it expects as many of 66 per cent of first-time investors to come from these two generations.
Alongside the increase in younger investors, there has been a 32 per cent increase in female investors in the UK over the past year.
In comparison, there has been an increase of just 11 per cent across Europe.
According to BlackRock forecasts, more than half, 51 per cent, of new UK investors will be women over the coming 12 months.
‘Investment platforms, and banks that also offer access digitally, are reaching a new pool of money,’ says Timo Toenges, head of digital wealth at BlackRock.
‘These models dispel the beliefs that investing needs to be complex and is not for people without deep expertise.’
BlackRock drew its findings from a survey of 36,730 people across Europe.
ETFs are proving a popular way in to investing
With the numbers of investors continuing to grow, many are choosing to use exchange traded funds, or ETFs, to enter the market.
These were first introduced more than 30 years ago, and the first UK ETF tracking the FTSE 100 launched in 2000.
ETFs have soared in popularity over recent years because of how easy they are to access via online platforms, while growing numbers of thematic trackers have given investors a large choice of options.
ETFs, like other equities, can be bought and sold on stock exchanges, but track a range of assets, rather than a single company. These inexpensive investments can be a good way for investors to diversify their portfolios.
Toenges said: ‘ETFs are a great way for people to start their investing journey, as they are simple to understand, transparent and carry low fees. Millions of people across Europe have turned to ETFs.
‘Digital platforms position ETFs front and centre for first time investors.’
Over the past 12 months, the UK has seen a 57 per cent surge in ETF ownership – the highest in Europe.
Most of these investors, some 87 per cent, use digital investing platforms to trade ETFs, instead of meeting with an adviser, independent or otherwise. Just 11 per cent said they would consult an adviser at their bank, compared with 21 per cent in the rest of Europe.
By way of comparison, just 44 per cent of those in Europe choose to access their investments via an online platform.
Digital platforms are a large part of what has made investing so much more accessible in recent years. However, around 70 per cent of people in the UK who don’t invest said they don’t have enough money to do so, with 65 per cent in Europe saying the same.
Partially this also comes down to a lack of financial education, with 54 per cent of the youngest cohort, those between 18 and 24, reporting that they don’t understand investing, or don’t know enough to start.
DIY INVESTING PLATFORMS
AJ Bell
AJ Bell
Easy investing and ready-made portfolios
Hargreaves Lansdown
Hargreaves Lansdown
Free fund dealing and investment ideas
interactive investor
interactive investor
Flat-fee investing from £4.99 per month
Saxo
Saxo
Get £200 back in trading fees
Trading 212
Trading 212
Free dealing and no account fee
Affiliate links: If you take out a product This is Money may earn a commission. These deals are chosen by our editorial team, as we think they are worth highlighting. This does not affect our editorial independence.
Some links in this article may be affiliate links. If you click on them we may earn a small commission. That helps us fund This Is Money, and keep it free to use. We do not write articles to promote products. We do not allow any commercial relationship to affect our editorial independence.
This article was originally published by a www.dailymail.co.uk . Read the Original article here. .