Generation Y are more likely than Generation X to have established a self-managed super fund (SMSF), and are investing more in property than shares to secure their financial future, a survey of more than 500 do-it-yourself (DIY) investors has found. However, they are also “significantly less likely” to perceive investment property as risky and far more likely to see it as a short-term option offering a higher yield, suggesting a lack of investment education.
The RaboPlus DIY Investor Survey, conducted by Celsius Research, covered DIY investors who possess $150,000 or more in personal savings (including super but excluding physical assets) and actively manage their investments. According to the survey, around three in four Generation Y investors will consider investment property in the future, yet fewer than half believe the asset class is risky. In addition, they are almost three times more likely to feel it is a short-term option than the average DIY investor.
Reflecting a heavy overweight in property, only 37 per cent of Generation Y DIY investors are diversifying their investments to lower risk. The survey shows that 40 to 49-year-olds are saving for their retirement while Generation Y are saving for property, and Baby Boomers (aged 50 plus) are more cautious and also investing for their retirement. DIY investors with SMSFs have a higher proportion of managed funds (23 per cent) and investment property (14 per cent) within the fund. They are more likely to have diversified their port