The world of investing has traditionally been the domain of the wealthy, with high minimum investment requirements and complex financial jargon often creating barriers to entry for the average person. However, in recent years, there has been a significant democratization of investing, with more and more households with modest assets under management (AUM) getting in on the action. This phenomenon has been driven in part by the rise of digital investing platforms that offer low-cost, user-friendly tools for buying and selling stocks and other securities.
Today, it is not uncommon to find mass-market households with less than $3,500 in AUM investing, and an increasing number of investors who did not complete college are also participating in the market. Democratization isn’t all about meme stocks, apps, and speculation — ignore it at your own peril.
Today, it is not uncommon to find mass-market households with less than $3,500 in AUM investing, and an increasing number of investors who did not complete college are also participating in the market. Democratization isn’t all about meme stocks, apps, and speculation — ignore it at your own peril.
More mass market households are getting into the markets. New Millennial, Gen X, and even Boomer investors are behind the surge.
The percentage of investor households in the Millennial and Gen X generations with less than $3,500 in assets under management (AUM) has increased. Robo-advisors and lower barriers to entry have made it easier for people to get started with investing.
The increase of investors who did not complete college, especially among Millennials, may be attributed partly to the rise of digital investment platforms that have made investing more accessible, and the availability of educational resources online. Asset managers need to rethink their perceptions of the modern-day investor. Approaching 21st-century
clientele with 20th-century business models won’t cut it. The new class of investors is diverse, has different financial goals, and demands a personalized experience. To learn more about current trends in U.S. investors, read the full U.S. Investor Study.
clientele with 20th-century business models won’t cut it. The new class of investors is diverse, has different financial goals, and demands a personalized experience. To learn more about current trends in U.S. investors, read the full U.S. Investor Study.