Young French investors more self-directed than older investors

They also review their investment portfolio more often than their older peers, research by Fundamental Media reveals

Key findings:

• A third of young French end investors followed advice from family or friends or used a financial website to help them decide on their current investments, while most older investors used their bank or financial institution
• On average French investors tend to review their investment portfolio less frequently than investors in the other markets surveyed, but young respondents do so more often than older investors
• When asked about how they plan to protect their investments against the current market environment, 33% of end investors in France said they will change their asset allocation

French end investors younger than 35 are more likely to have picked their current investments by using a financial website or following advice from family and friends than their older peers, who are more likely to have used their bank or financial institution, research by Fundamental Media has found.

Although all age and wealth groups use multiple sources and channels to help them choose and buy their investments, there are some notable differences.

A third of young respondents used a financial website to help them decide, compared to 26% of those aged between 35 to 54 and 19% of those older than 54. The figures for those having followed advice from friends, family and colleagues are similar for the different age groups. Conversely, 48% of the oldest age group picked their current investments through their bank or financial institution, compared to only 31% of those under 35.

The above ranking is a snapshot of data available in the French end investors report. A more detailed breakdown, including by age and wealth bracket, is available in the full report

On average, younger respondents also review their portfolio more often than their older counterparts. More than half (52%) of young investors review their portfolio at least quarterly, with an additional 27% doing so every 3 to 6 months. Among those aged between 35 and 54, 61% reviews their portfolio at least once every half year, and for the older investors this figure is 55%.

The above chart is a snapshot of data available in the French end investors report. A more detailed break-down, including by age and wealth bracket, is available in the full report

However, on average French investors tend to review their investment portfolio less frequently than investors in the other markets surveyed.

For our 2022 European end investors report series, we surveyed 1,070 end investors in the UK, 1,089 end investors in Italy, 1,163 end investors in Germany and 1,068 end investors in France.

Cost of living crisis

Our research highlights how the current cost of living crisis caused by high inflation and energy prices is affecting end investors across Europe. In the UK, Germany and Italy, respondents indicated that they are now less confident about their future retirement income than they were during our previous survey in 2018.

In our 2022 survey, only 48% of French respondents are confident in having enough money when retiring and 28% think they are not saving enough for retirement. Low income and looking after family were the main reasons selected for not saving more. This uncertainty among end investors poses an opportunity for asset managers to educate and provide suitable solutions.

When asked about how they plan to protect their investments against the current market environment, 33% of end investors in France said they will change their asset allocation, the highest figure among the markets surveyed. Others will increase the amount invested or change investment products.

For access to the full reports, contact [email protected]