IT is plainly true that the pandemic saw the rise of the digital retail investor across markets worldwide, including Malaysia.
Also, the pandemic economy saw investing and saving habits changing out of necessity and due to the accessibility of technology.
Based on a survey conducted by Rakuten Insight Malaysia – a purely digital market research hub – in December last year, millennials aged between 26 and 40 made up 68% of those who used online investment platforms last year.
According to the research company, the findings of the survey reflected the traction witnessed on Rakuten Trade – its fully digital platform – in 2020 with significant trading activity seen among those aged between 26 and 30.
Hardest hit by the pandemic, these technology-savvy millennials made up the biggest group of digital retail investors who chose to invest online to improve their financial security with most traders (73.83%) looking to invest more wisely in the future.
Surprisingly, the survey which was set out to discover more about the rise of the younger digital investor in the new norm, found that that digital investing was not primarily the domain of millennials with 32% comprising those in their 40s and 50s.
Furthermore, the survey also saw that investment opportunities which could provide long-term growth (45%) and short-term returns (18%) gained more popularity among investors last year.
“From the results, we can assume that millennials viewed investing, and not just saving, as a way to build financial stability during a challenging period,” Rakuten Insight’s country director Collin Leow remarked.
Meanwhile, Rakuten Trade Sdn Bhd’s CEO Kazumasa Mise pointed out that these new traders had previously never traded in equities before last year and this investing trend has continued in 2021 despite the easing of movement restrictions.
Mise added that while traders may have easy access to digital investment tools and information, the need to develop strong financial literacy remains vital.
“Rakuten Trade firmly believes that trading ideas, insights and intelligence from certified experts are key here and we encourage traders to utilise them.”
Rakuten Insight also reported an upward trend in online trading activity among existing traders with 44% more digital retail investors increasing their trading activity during the movement restriction periods.
In addition, almost 34% of digital retail investors said they will continue to invest using their current online trading platform while almost 29% will increase their investment in the near future. – April 25, 2021
Photo credit: Getty Images
