When investing in mutual funds, factors ranging from age to the individual risk profile of each person have an influence. This is confirmed by the latest study by the Inverco Observatorio, which details the age groups that participate in funds: almost a third, 28%, belong to the baby boomer generation (from 56 to 74 years old), 26% are millennials (from 39 to 24 years old), 24% to generation X (from 55 to 40 years old), followed by the silent generation (from 92 to 75 years old) with 11% and the youngest, the centennials (under 23 years old) with the same percentage.
Thus, it is confirmed that time in investment is undergoing transformations in Spain. As far as investment funds are concerned, it is a product that is gradually gaining weight to improve the finances of individuals. However, deposits are undoubtedly the most popular product in these sectors, despite their low profitability.
The report shows that Spanish investors are increasingly willing to take risks in order to obtain returns. More than half (52%) are considered to have a moderate profile, a third are described as conservative and 15% are identified as dynamic.
Investing in the stock market at a personal level
Traditionally, investors did not have much information about which specific deposits they had, as they often delegated these functions to management companies. However, this trend has also changed, as according to the report, 87% now know in which exact products they have their capital. This could be due to the entry of new investor profiles, especially the younger ones, belonging to the centennial and millennial generations.
For its part, investment in the stock market remains the preferred product for 33% of savers. This type of preferred vehicle is followed by mixed, global and absolute return funds (22%), guaranteed funds (19%) and money and fixed income funds (11%).
Equities (stock market) are the preferred option for the most adult sector, while those under 23 years of age opt for monetary and fixed-income funds (26%). Of the number of funds contracted, more than half (59%) diversify their investments in various products. In addition, dynamic investors prefer to be informed by the fund’s own documentation (44%), while moderate (50%) and conservative (51%) opt for the figure of the advisor to decide whether to invest in these products.
Likewise, the new generations are the most interested in the information communicated by the management company through these channels, as nearly a third of centennials follow some entity in social networks. With regard to the forms of hiring this type of product, more than a third of participants do so through their personal advisor or in person at their institution (33%), while 21% choose to do so through the website or app of the financial institution.
What is Inverco?
The Inverco Observatorio is a forum for analysing the behaviour and investment dynamics of savers. Its main mission is to contribute to a better understanding of the operation of investment funds and pension plans with the ultimate aim of transferring this knowledge to savers to facilitate their investment decisions. They study the investment behavior of savers-investors, as well as analyze the collective trends of the country.
At TFS Grupo we provide investment fund management services for companies and individuals. You can contact us to evaluate the options adapted to your finances.