Our research has found that most Australian investors do not diversify.
Many have a risk-averse outlook with nearly 70% seeking stable, reliable or guaranteed returns from their investments. As a result, they settle for low-return, cash investments to stay safe, and dabbling in riskier equities to increase returns.
But the Australian investment market is evolving rapidly.
Low interest rates and global monetary policy have pushed yields to record lows, property prices have hit "bubbly" proportions in many locations and more and more Australians are shunning pooled superannuation and establishing self managed super funds (SMSF).
So how can investors seek higher yield without a disproportionate increase in risk?
In this current environment, Australian 'DIY' investors have the opportunity to increase their exposure to debt products, as long as they can increase their familiarity with them, understand the need to balance risk with reward, and have a sense of control and visibility.
Download the full white paper to understand the investment trends among Australian investors and explore the alternative new asset class that can add that ‘middle ground’ today for investors seeking to create a more balanced investment portfolio.
SMSF investors represent the largest group of ‘DIY’ investors, with their funds accounting for almost one-third of the superannuation pool in Australia yet their portfolios are heavily weighted towards cash, term deposits and property.