Ross Duncton, Managing Director, Head of Direct at BMO, commented: “The past year has been a real step-change in the way that young people are approaching investing. While it’s encouraging to see so many young people are engaged in investing, and many doing so for the first time, we would encourage people to consult social media as part of a wide range of sources when making an investment decision. Equipping yourself with as much information as possible will enhance the likelihood of building a pot of money that is aligned to your long-term goals and risk appetite, meaning going on that dream holiday, saving a deposit for a house or building a healthy income for retirement could happen sooner.
“It is encouraging to see that our research shows young people want more information and guidance when it comes to investing. The financial services industry needs to do more to help fill that information void, especially given the pace and scale at which people are now engaging with investing. For those young people looking to build their knowledge, we encourage them to tap into a wide variety of sources, ranging from tips and insights on investment websites and in the media, to having conversations with friends and family.”
For young people looking to get started, F&C Investment Trust provides tips to support investment decision making:
- Brush up on the lingo. Finance can be a confusing enough topic by itself, but the fast-pace nature of social media and online word limits can sometimes lead to an overwhelming combination of jargon and abbreviations. Investment glossary websites provide simple explanations for unfamiliar terms.
- Don’t skip the personal finance pages. While it can be tempting to dive straight into the internet search bar when you’re looking for a quick answer, regularly reading the personal finance pages of major newspapers or consumer titles will help to build a better overall awareness of the options available to you as an investor. The range of content, from interviews with everyday investors to share-tips from expert fund managers, will clue you up on market trends and arm you with a more well-rounded approach to investing.
- Open a dialogue with friends and family. Money is a topic that many people shy away from, so it may surprise you to hear where those closest to you have invested their money and why. While what works for them may not work for you, starting these conversations with trusted friends and family members is a great way to broaden your understanding of the range of investment decisions available, and provide you with some new perspectives.
- Invest with a professionally managed fund or trust. There are hundreds of companies out there that you can invest in, but for novices this can be a daunting task. For those wanting access to a diverse range of companies, you may want to consider turning to professionally managed funds and trusts. Highly diversified trusts, such as F&C Investment Trust consisting of over 450 stocks, are professionally managed and designed to deliver more stable long-term growth and income.