Younger generations are embracing the risks of investing following the initial coronavirus market crash, new research from the personal finance comparison site, finder.com, has found. With investing becoming digital, more people want to access it as they can do it from anywhere and anytime, tracking their progress and making decisions on where they want their money to go. Because of this sudden uptake, using websites such as alphabetastock.com for investment assistance (as well as others), which you can view more about on their website, has grown over time so that new investors are not going in at the deep end with high expectations, and can take it slowly.

Over a quarter of gen Z and millennials (28% and 26%) say the market crash has made them more likely to invest over the next 12 months by using websites like Hustle Reviews as well as others to help with picking out the right investment platforms to go with. This percentage is almost 3 times higher than the silent generation (10%) and significantly higher than baby boomers (16%).

They are also the generations most interested in investing more broadly. Three quarters of both gen Z’ers and millennials plan to invest at some point (75% and 74%), while only 4 in 10 (41%) of the silent generation will do so.

One of the reasons behind this could be their adoption of investing apps like Personal Capital. Over 4 in 10 millennial investors (44%) said the accessibility of trading apps was a reason behind their interest, and a third (32%) appreciated the low cost of investing this way.

In contrast, baby boomers were much less likely to cite both the accessibility of trading apps (18%) and the low fees they offer (13%).

Young investors are also twice as likely to invest in firms that are struggling, due to the cheaper share price. A third of gen Z’ers (34%) plan to do this compared to 17% of gen X’ers and 16% of baby boomers. However, it might not be a good idea to practice the same thing in the future as well, since they might have to incur losses as a result of a lack of knowledge. Young investors must be aware of the risks associated with investing in companies without conducting extensive research on them. In fact, they might want to analyze the criteria used to determine the value of a company’s stock. Blog posts on websites similar to Sell.io may provide them with insight into the calculation of enterprise value and market depth, as well as the metrics used by investors to determine whether the company’s shares are worth the prices offered.
Across all ages, investor sentiment appears to be split on whether the Coronavirus, and subsequent market crash, offers a good opportunity to invest or not. While 1 in 5 (20%) potential investors say it has made them more likely to invest over the next 12 months, the same amount (20%) say they are less likely to invest as a result.

What are the UK’s investing plans?

The UK is experiencing a surge in share-trading interest, with two thirds of the population (67%) planning to buy stocks and shares in the future. This is a 32% increase since 2018.

The most popular reason for people looking to invest is the poor interest rates that savings accounts currently offer. Over half (55%) of those interested in share trading have been motivated by this, and it was also the top reason in 2018.

Positively, over a quarter (27%) of potential investors want to do so ethically, and back firms that have a beneficial impact on society.

While more men are planning to invest than women (73% v 61%), the percentage of women looking to invest has grown by 41% over the past 2 years.