The rise of the Gen Y share investor
<p>In 2015, 62 per cent of a record eight-million trading accounts were opened by people under the age of 35. Gen Y, or the Millennials as they are also known, are those people born roughly between the 1980s and 2000s – and they are starting to get seriously involved in the stock market. Twenty years ago the majority of investors were aged in their late 40s and 50s and just one fifth of one fifth of their new investors were under 35. Now, according to research from CommSec, more than half of their investors are Millennials.</p>
<p>Managing director of CommSec, Paul Rayson, said “this shift in age demographic is a striking feature of a change in consumer behaviour looking back over the past 20 years. It demonstrates how younger people have embraced technology and become more self-directed in their approach to financial decision-making.”</p>
<p>So why are they investing now? As Baby Boomers and Gen X continue to dominate the property market in the major cities, Gen Y is feeling priced out. Shares offer an easier, more affordable investment point for young people with a smaller income and few savings. Plus, many Millennials find the trading exciting and it gives them the feeling that they are really in control of their own financial future.</p>
<p>One theory suggests that technological innovations and the high visibility of major companies encourage investment. Ryan Dinsdale from CommSec believes that Gen Yers have grown up around companies like Google and Apple that are talked about widely – and publicly listed on the share market. They have much more exposure to the workings and philosophies of these multinational corporations than any generation before them. “They think, I can have a share in a company I connect with,” says Dinsdale.</p>
<p>The rise of mobile technology also contributes to the new breed of Gen Y traders. People under 35 are used to doing everything on their smartphone and new technology means they can access their investments and make trades from the palm of their hand. A report from Investment Trends, a global finance market research company, found that 60 per cent of online investors use their mobile to monitor the market, but that figure rises to 77 per cent for under 35s. Gen Y likes to do their research and trade on the move, and it’s a pattern that shows no signs of slowing down.</p>
