"Self-directed investors to move from Cash to Shares according to InvestSMART’s Funds Flow survey"
InvestSMART Financial Services’ inaugural Funds Flow Survey has found two-fifths, or 38%, of self-directed investors intend to increase their level of investment over the next six months, while only four percent intend to decrease their level of investment.
The survey analysed self-directed investors’ investment intentions over six months, starting from June 2009. Respondents were sourced from InvestSMART’s online community of self-directed investors, with 3,046 users completing the survey.
The most significant shift in respondent investors’ portfolios will be an increased investment in Shares, which is expected to rise 7.2 percentage points to 61% of investors’ total portfolio value.
Key findings include:
Those with DIY Super indicated a higher than average increase in investment in Australian Small Cap shares.
Risk Averse Investors indicated an above average movement out of cash, coupled with an above average interest in Australian Small Caps.
Respondents aged 60 or over indicated a less pronounced decrease in cash investment.
Those under 40 plan an additional investment over the next 6 months equivalent to 15% of their current portfolio size. This figure declines with increasing age, falling to 8% for those between 40 and 59 and to 4% for those 60 or over.
Despite recent investment lending shocks, 47% of respondents with gearing intend to increase their level of investment. 65% of this group intend to utilise increased gearing to increase their portfolio size.
InvestSMART would like to thank all our survey participants who shared their investing behaviours and intentions with us.
