Australian investors made an average of more than $5000 the stock market in 2021, and younger generations were leading the way.
It seems like people are only talking about buying property and bitcoin in terms of investments, but last year Aussie were still making a pretty penny on the stock market.
According to Finder’s Consumer Sentiment Tracker, three out of four investors received a positive return on their stock market investments in 2021, with individual investors making an average annual return of $5356 (based on the size of the average investor’s portfolio today — $31,613). That’s an average growth in returns of 20.4 per cent.
“The 2020 market crash was a game changer for Australians, with thousands of people a day signing up to online brokers for the first time,” explained Finder share trading expert, Kylie Purcell.
“With savings rates at record lows, Australians have been quick to adapt by putting some of their money into shares, which can deliver higher returns.”
Finder research also found that while 37 per cent of Australians are investing in the stock market, millennials (46 per cent) and gen Z (42 per cent) are the most likely to do so.
At 26-years-old, Annabelle Cannon is one such millennial. She’s currently a talent co-ordinator and uni student, but she started a financial Instagram page to share her journey.
She says that her push to get into the stock market came after using the government’s Moneysmart website to project how much superannuation she’d have to retire on.
“It was way less than I would hope for,” she explained. “Plus, looking at data and seeing how much gender can affect your balance, I wanted to find another way.”
Deciding on the stock market for its flexibility, she got started again in July 2021, after an earlier failed attempt — and it didn’t take much money to get started.
Starting out with just $170, Ms Cannon still managed to make a small profit, despite being brand new
“I’ve recently set up a monthly investment. I called 2021 my learning year to figure out my personal comfort with risk, and actually learn how it all works before going all in.”