2024-11-18 06:00:00
After cryptocurrencies, would young people show enthusiasm for the stock market? According to the Financial Markets Authority, more than 266,000 French investors carried out, in the second quarter of 2024, at least one transaction on an ETF, these continuously listed index funds which simplify investment in stocks. This figure, twice as high as in the second quarter of 2023, is largely explained by the significant influx of new investors under the age of 35 in recent quarters. A trend which has contributed to bringing down the average age of ETF investors by almost… twenty years in five years!
Are young people more daring and more open to new financial products than their elders? In any case, investment promoters seek to attract this clientele. SCPIs, products invested in real estate and intended to provide a regular return, far from the ups and downs of the stock market, also seem to attract novice investors. SCPI Iroko thus claims to have succeeded in attracting people under 30, who represent 22% of its customers.
The same motivations
The prospect of retirement, even if distant, would push these French people in their thirties to save: 62% of 18-24 year olds and 56% of 25-34 year olds consider the retirement savings plan (PER) interesting, compared to 57% of the entire population, according to a survey by the IFOP and Cecop on behalf of the Circle of Savings and Amphitéa. An interest which is explained as much by the prospect of difficult old days financially as by the immediate tax advantages provided by the PER.
Presented as more sensitive to environmental and social issues, young people apparently have the same motivations as their elders when it comes to saving, namely the search for performance and… tax deductions. However, the situation is more complex than it seems. To take stock, The World is organizing, on Tuesday, November 19, with the support of Crédit Coopératif and ESCP Business School, an event entitled “Young people and money: my money, my planet, my values”, during which a barometer produced will be unveiled by Viavoice on the relationship of new generations with money.
“Young people and money: my money, my planet, my values”, November 19, at 6:30 p.m., at the auditorium of the Mondein Paris. Free access on inscription.
1731910707
#savings #young #people #turning
What factors are contributing to the rise of young investors in France, particularly in ETFs and other financial products?
**Interview with Financial Analyst Sophie Martel on the Rise of Young Investors in France**
**Interviewer:** Good morning, Sophie! Thank you for joining us today. Recent statistics from the Financial Markets Authority reveal that young people in France are increasingly participating in the stock market, particularly in ETFs. What do you make of this trend?
**Sophie Martel:** Good morning! It’s a pleasure to be here. The surge in young investors engaging with ETFs is indeed remarkable. The data showing over 266,000 transactions in just the second quarter of 2024 indicates a significant shift. This demographic’s appetite for financial products reflects their desire for accessible and diversified investment options.
**Interviewer:** It’s fascinating that the average age of ETF investors has decreased by almost twenty years in five years. What do you think is driving this change?
**Sophie Martel:** A combination of factors is likely at play. Young people today are growing up in a digital world that offers them easier access to financial information and trading platforms. There’s also a growing awareness of the importance of financial literacy and long-term financial planning among younger generations. Their encounters with cryptocurrencies have likely made them more open-minded about investing in traditional assets like stocks.
**Interviewer:** You mentioned financial literacy. How is this shift influencing the way young people approach savings and retirement planning?
**Sophie Martel:** There is a noticeable shift in mindset. As per recent surveys, many young individuals recognize the importance of saving for retirement, even if it’s a distant prospect. The fact that 62% of 18-24-year-olds find the retirement savings plan (PER) appealing indicates that they are beginning to prioritize long-term financial security. The added tax advantages of these plans make them particularly attractive.
**Interviewer:** Investment promoters are clearly targeting this younger audience. Are there other investment products gaining traction among novice investors besides ETFs?
**Sophie Martel:** Yes, absolutely! Real estate investment products like SCPIs (Sociétés Civiles de Placement Immobilier) are also appealing to young investors as they provide a more stable return compared to the volatility of stocks. Companies like SCPI Iroko have successfully attracted a younger clientele, recognizing the blend of immediate returns and a safer investment profile is appealing to first-time investors.
**Interviewer:** In your view, do you believe this newfound enthusiasm for the stock market and other investment products among young people will last?
**Sophie Martel:** I think it will, especially as young people face increasing financial responsibilities, from education costs to housing. Their proactive approach to investments suggests a positive long-term trend towards financial engagement. As they continue to prioritize security and growth in their investments, we are likely to see them as a permanent fixture in the financial markets.
**Interviewer:** Thank you, Sophie, for sharing your insights today. It’s an exciting time for young investors in France!
**Sophie Martel:** Thank you for having me, and I look forward to seeing how this landscape continues to evolve!