• More than a fifth (22%) of Brits are currently investing in stocks and shares, with a total of 26.6 million people saying they plan to at some point
• Poor rates on savings accounts are driving 43% of investors to do so
• 1 in 10 millennials who would invest in a company would do it because they like its ads or spokesperson

16 July 2019, LONDON –

Over half of Brits (51%) plan to invest in stocks and shares at some point, a new survey from finance comparison website finder.com has found. This includes more than a fifth (22%) who say they have already got stocks and shares.

There are many reasons behind the interest in investing though, with the most common thing pushing people to consider the stock market being the continued poor rates on savings accounts – 43% of those who wouldn’t rule investing out said this was a factor.

This is followed by a third (32%) of potential investors who have seen a company doing well and wanted to get on the bandwagon. However, some are actually taking the opposite approach – 15% say they plan to invest in a company not doing well in order to get shares at a good price.

Reduced barriers to entry via investment apps that guide consumers through the process and charge as little as £2 per investment appear to also be encouraging consumers to try investing – a fifth (19%) of those who would consider investing said this was the reason they would do it.

The increasing popularity of stocks and shares is creating a virtuous circle: around 1 in 8 (12%) potential investors said they wanted to get involved because more people seemed to be doing it.

Finally, many look at factors that have more to do with the company they want to invest in than with their personal finances. Out of the 26.6 million Brits who would consider investing, a quarter (25%) said they would do it because they like the products sold by a company, 1.9 million (7%) because they like its ads or spokesperson and 1.7 million (7%) because they like its owner or CEO.

Men seem to be less reluctant than women to invest their savings. Over half of women (57%) would never do it, against only 2 in 5 men (41%).

Stock and share trading has become especially popular among the younger generations, with almost 3 in 5 (57%) people belonging to generation Z (born after 1996) saying they wouldn’t rule it out. 1 in 10 (10%) already own stocks and shares in some form.

Millennials are the most prone to investing in a company because they like its ads or spokespeople: more than 1 in 10 (11%) of those who would consider investing would do so for that reason, against only 1 in 25 (4%) baby boomers (born 1946–1964).

Speaking about the findings, Jon Ostler, CEO (UK) at finder.com said: “It’s great that new mobile apps and increased accessibility are giving people the option to explore the possibility of investing. Our research is a clear indication that stocks and share trading is no longer just for those with access to brokers.

It is important to always remember that investing does not guarantee positive returns, but beginners who want to try investing can start by following a few basic tips:

• Start small: don’t invest a lot of money before knowing what you’re doing.
• Compare different share dealing accounts, looking for something that has low fees but is also easy to use and offers a lot of knowledge you can access.
• Consider how much you’re prepared to lose, and perhaps only choose low-risk investment options at the beginning.
• Always diversify your portfolio: don’t invest all your money in the same company.
• Consider a fund or a set of funds instead of picking single companies yourself. Many providers will offer a selection of funds matching your risk profile and personal preferences – for example, you can decide to opt for an ethical fund.
• If you aren’t using your ISA allowance already, with a stock and shares ISA your investment profits won’t be taxed.
• Invest for the long term, try not to focus too much on the short-term ups and downs.
• And remember past performance is not a guarantee of future performance and your investment can go down as well as up!”

Methodology

• Finder.com commissioned Onepoll to carry out a nationally representative survey of adults aged 18+.
• A total of 2,000 people were questioned throughout Great Britain, with representative quotas for gender, age and region.
• Jon Ostler, CEO (UK) of finder.com, is available for additional comment and interview about this research.