2023-09-30 08:47:36
The dizzying fall in the markets resulting from the health crisis sounded like a buying signal for many savers, starting with young people. However, far from being a flash in the pan, this craze has been confirmed year following year, revealing itself to be an underlying trend which is helping to rejuvenate the population of French equity investors.
How to explain it? What do you need to know to get started? While the Financial Markets Authority (AMF), the sector watchdog, is closely monitoring this significant development, we deciphered this phenomenon with the director of relations with savers, Claire Castanet.
The soaring numbers
“Already in 2019, we saw an attraction for the stock market. Young people seemed to be waiting for the right moment to enter the market,” explains the specialist.
And it was in the midst of Covid-19 that many finally took action. As a recent publication from the AMF Savings Observatory points out: “As of 2020, more than 110,000 people under the age of 35 have invested in shares each quarter, on average, compared to 38,000 in 2018”.
In addition to the decline in the markets, this phenomenon was supported by the proliferation of neobrokers and their fun and intuitive online brokerage solutions, as well as by accessible financial products such as ETFs, these listed index funds which make it possible to diversify risks for low fees.
If the flow has since normalized, young people represented 38.5% of the approximately 95,500 new individual investors in stocks in the first half of 2023, where they were 28% in 2020 and barely 12% in 2019.
Even very young people are getting started since the share of those under 25 reached 14.1% of new investors this year, twice as many as in 2020.
A confident profile
These telling figures can be explained by the profile of this population of savers who demonstrate an appetite for risk (42% in 2021 and 37% in 2022 according to the AMF barometers) and a certain confidence in The evolution of the economic and financial situation (51% in 2021, compared to 42% in 2022), two essential characteristics for investing in the stock market!
However, if “this rejuvenation of investors is good news, it is essential for these novices to acquire a stock market culture, to train and understand what they are investing in”, warns Claire Castanet.
In fact, you need to know the financial vocabulary as well as the products you want to bet on in order not to make a mistake when placing your stock market orders.
Not to mention that scams promising to get rich without risk are legion in the sector!
As for any beginner investor, it is therefore imperative to know that there is no return without risk, that it is essential to diversify one’s investments in order not to put all one’s eggs in one basket and that one you must always ensure the seriousness of the professional thanks to the lists black et white of the AMF but also of the Register of financial agents (Regafi) before entrusting your funds to them.
Finally, the director of relations with savers reminds that “you should only invest money that you do not need immediately since it is a question of making an economic bet on the future involving an investment on the long term “.
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