Australian investors saw a $5,356 return on their investments in 2021, according to new analysis of the average Australian portfolio.
Three-quarters of investors saw a positive return over the last 12 months, the Finder analysis found, with the average investor’s portfolio now $31,613. Another 15 per cent saw no change and 10 per cent experienced a negative return.
“Savings rates are near-zero, and Aussies have been quick to adapt by switching some of their money over to shares, which can deliver higher returns,” Finder share expert Kylie Purcell said.
“The 2020 market crash was a game-changer for Australians, with thousands of people a day signing up to online brokers for the first time.”
In the year to December, the ASX200 recorded 9.84 per cent gains, while the All Ordinaries recorded 9.96 per cent growth.
Looking further afield, the gains were even larger.
The S&P500 lifted 26.13 per cent in the year to date, while the Nasdaq and Dow Jones lifted 22.20 per cent and 18.30 per cent respectively.
Australian investors saw an average growth of 20.4 per cent, Finder’s survey found.
“Investing used to be a scary, far-away concept for many Australians, but recently we’ve seen more and more people keen to jump in and build their wealth,” Purcell said.
“Online platforms have made it easier than ever for everyday people to get involved. Apps like eToro and Superhero are easy to use even if you’re not a finance expert – but watch out for brokerage and subscription fees,” she added.
Younger investors in Generation Z saw the highest returns on average, at 36.8 per cent, while Generation Y – or Millennial – investors saw 22.6 per cent gains.
Generation X investors saw 15.8 per cent returns, while Baby Boomers – who are approaching or in retirement – saw 6.1 per cent returns on average.
How are we investing?
Previous Finder research found 79 per cent of investors invest following either a plan, or external advice.
Additionally, 39 per cent pursue a “buy low, sell high” strategy, while 23 per cent prefer to invest exclusively in exchange-traded funds (ETFs).
Another 23 per cent said they simply invest where financial experts suggest they do, while 16 per cent invest using micro-investing apps like Raiz.
“You don’t need to be rich to get involved – there are micro-investing apps that let you invest your spare change,” Purcell said.
“Just make sure your investment is diversified. Instead of betting all your chips on one or two companies, spread it out to reduce your risk.”