Savings during lockdown make British millennials invest in stock markets
LONDON (UK) – The spread of the pandemic has sparked a spike in investment among Britons, especially millennials, and they are turning to the stock market.
In Q-1, the household consumption went down by a record 9.5 billion pounds as the spending on eating outside, cloths and vehicles registered a slump.
This created an interest in equity investment by millennials frustrated with low savings rates.
Investment platform Interactive Investor said that openings of tax-efficient self-invested personal pensions (SIPPs) and ISA investment accounts by 25 to 34 year olds recorded a spurt of more than 250% year on year in Q-2.
Calstone’s survey found that 69% of millennials with investment portfolios have added to them last month or plan to do so in September.
Only 29% of the “older baby boomers” chalked up new investment plans last month.
Tom Butterworth, 25, who works as an accountant manager in London, said he is trying stocks for the first time.
“I can see that during this crash is a good time to buy due to prices being so low … I have only just come into a position where I feel comfortable investing a small amount each month,” he said.
He plans to invest about 200 pounds a month, mainly in funds tracking the UK stock market.
(Photos syndicated via Reuters)
This story has been edited by BH staff and is published from a syndicated field