You are here: Home - Investing - Getting Started - News -

Young investors outperformed older cohorts during pandemic   

0
Written by:
14/07/2021
Young investors have outperformed all other age groups since the start of the coronavirus pandemic, a study reveals.

Those aged 18-24 returned 17.2 per cent on average over the last 18 months, according to customer data from investment platform Interactive Investor.

In comparison, investors aged 25-34 made 15.3 per cent on average, 35–44-year-olds earned 14.6 per cent, 45–54-year-olds brought in 12.3 per cent, 55–64-year-olds made 9.8 per cent and the over 65s returned just 7 per cent.

Interactive Investor said the youngest age bracket had a much greater exposure to investment trusts compared to its average customer base.

Exposure to investment trusts can boost performance in a rising market but be a drag in a falling market. That’s because many investment trusts can gear – or borrow – to enhance returns.

The average 18–24-year-old held almost 34 per cent of their portfolio in investment trusts compared to the typical 35-44-year-old who had 12 per cent.

Scottish Mortgage, Alliance Trust and Fundsmith Equity were among the most popular funds and trusts for all age groups.

When it came to stocks, Apple, Amazon and Tesla were among the most popular among the 25-34 and 35-44 age cohorts. Apple and Tesla were favourites for 45-54-year-olds and Lloyds Banking Group, Royal Dutch Shell and AstraZeneca were amongst the most favoured by the over 55s.

Richard Wilson, chief executive of Interactive Investor, said: “Successful investing means taking a long-term view, avoiding knee-jerk decisions, and diversifying well, which we have seen many customers doing to navigate the storms. During a period when we have often heard about younger investors ramping up their risk profiles, our data suggests that the cliches might need revising.”

Wealthy investors with accounts of £1m or more outperformed all other asset bands over 18 months, returning on average 17.7 per cent. Those with accounts of between £100,000 and £1m made 13.2 per cent on average and investors with £50,000 to £100,000 got 9.5 per cent.

Interactive Investor customers based in the Channel Islands have performed the best since the pandemic began, followed by those in Scotland and London.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

It’s time to get your finances in shape, and moving your cash savings to a higher paying deal is a good plac...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

The experts’ guide to sorting out your personal finances in 2021

From opting to ‘low spend’ months to imposing your own ‘cooling-off period’, industry experts reveal t...

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week