Singapore’s Millennials and Gen Z investors remain very optimistic about investing during the coronavirus pandemic and are confident about their prospects, according to a new study.
Franklin Templeton’s first Next-Gen Investor Survey found that over the past 18 months, 80% of respondents continued to invest during the Covid-19 crisis, while an even higher percentage of 88% was planning to invest over the next year.
About 37 percent had a monthly personal income of less than S $ 3,000 (US $ 2,219), 31% earned between S $ 3,000 and 5,999, 20 percent earned between S $ 6,000 and S $ 9,999, and 11 per cent earned between S $ 6,000 and S $ 9,999. one hundred received more than $ 10,000 per month.
The online survey examined the motivations, intentions and investment aspirations of Singapore Millennials, aged 25 to 35, and Gen Z, aged 18 to 24, amid the Covid pandemic -19. There were 502 respondents and the survey was conducted from March 19 to April 6.
A promising finding for the industry is that 83% of those surveyed are regular monthly savers and half set aside some of their income specifically to invest, with the average annual investment amounting to just over 18,000. S $ The majority, 56 percent, also prefer to save through average costs, while 24 percent are flat-rate recipients.
But while these young investors are keen to save, most also have high expectations for return on their investment. More than half expect annual returns of more than 10 percent, and a third expect returns of 5 to 10 percent. Another 15 percent expects a return of 1 to 5 percent.
The traditional model of 60 percent equity and 40 percent fixed income asset allocation is preferred by 57 percent of respondents, while 23 percent use asset allocation strategies and 20 percent n ‘have no strategy. Over 33% of respondents own stocks, with this asset class remaining the most popular option over the next 12 months.