Financial Markets Authority (FMA), New Zealand’s Government agency responsible for financial regulations in the region, recently published the results of its ‘Retail Investors Platform’ survey and highlighted a surge in interest for online investment platforms in the country.
The research, which was conducted by the FMA in partnership with data and consulting company Kantar Public, shows that 80% of the surveyed New Zealand investors have a more favorable view of investing and financial markets after using online investing platforms.
The results of the online survey, which includes nearly 2,000 respondents, highlights that 45% of the surveyed investors purchased shares as their first investment using an online platform. Nearly 31% of the respondents jumped into an investment because of FOMO (Fear of Missing Out).
Commenting on the research results, Rob Everett, CEO at FMA NZ, said: “These online platforms have made it easier for people to access the markets and learn about investing - 34 percent of investors said they now have a better understanding of markets after using the platforms. We’re encouraged to see that most investors have good intentions around how they should invest, with around 80 percent buying shares or other investments and holding them for the long term. Day trading is in the minority with just two percent of investors buying and selling multiple times a day.”
Impact of Social Media on Investing
In the latest report, FMA outlined that approximately 80% of Kiwi investors use at least one social media source before making an investment. Around 75% of respondents use at least one expert source. On average, investors consulted more than 4 sources of information before making an investment decision, but this was often to confirm their own gut feeling.
“Many people, particularly those more recent to investing, were using ‘research’ to justify their instinct/gut feel,” FMA mentioned in the report.
“It’s great to see such enthusiasm from new investors, they’ve had a great run and seen their investments grow on the back of a big market rally,” Everett added.
