Sydney, July 17: For the first time in its 25-year history, the ASX Sharemarket Game has seen women under 40 outnumbering men, with participation increasing from 14 per cent in 2022 to 26 per cent in 2023.
Women now represent 28 per cent of participants compared to 25 per cent of men.
“We are seeing a changing of the guard in the profile of participants in the ASX Sharemarket Game, a development that reflects the changing habits of Australians holding assets outside the home and super, but also a continuation of the inspired appetite for investing we saw during the COVID-19 pandemic,” commented ASX Head of Equity Markets, Graham O’Brien.
The ASX Australian Investor Study 2023 found that 75 per cent of the 10.2 million Australians who hold investments outside their home and super invest in the sharemarket.
The rise in property prices and cost-of-living pressures have driven people to consider investments outside their home and superannuation, with tools like the ASX Sharemarket Game providing a low-risk environment to learn investing.
Financial literacy has played a significant role in encouraging more women to invest. Women now account for 42 per cent of current investors, with the percentage of next-generation female investors increasing from 9 per cent in 2020 to 11 per cent in 2023.
This shift is partly due to the increased accessibility of financial markets via apps, online brokers, and investment platforms, as well as a greater focus on financial literacy and independence.
“The changing profile of sharemarket investors has highlighted the role educational tools such as the ASX Sharemarket Game can play in preparing new investors and understanding market volatility, which has been a challenging factor for participants in the current ASX Game,” noted O’Brien.
The ASX Sharemarket Game provides participants with a virtual portfolio of $50K to invest in over 300 ASX-listed companies, including ASX 200 companies, small and mid-cap companies, as well as ETFs and LICs. This setup allows participants to familiarize themselves with stocks and sectors, and develop knowledge about risk and reward trade-offs.
According to O’Brien, “The sharemarket has experienced periods of market volatility during the 2024 games period, inching out a small 0.3 per cent rise to date. The volatility has required game participants to ride out the ups and downs of day-to-day share price movements, made easier for those new to investing as the virtual cash provided in the game makes it less risky to test out a new strategy before having real skin in the game.”
The updated 2024 Game format runs for six months from 7 March to 5 September 2024. It aims to create a more authentic investing experience and introduces a $500 monthly prize for the most improved portfolio, with the final prize pool increased to $3,000 for the top-performing portfolio at the end of the game. Leagues remain a popular feature, allowing participants to play alongside friends, family, or colleagues, fostering a sense of friendly competition.
The ASX provides a host of free tools and resources to help participants build their investment knowledge. Via regular newsletters, events, podcasts, and webcasts, new investors can learn more about how markets work and the different types of investments available. More experienced investors can use research tools and reports to stay on top of investment opportunities, market trends, and strategies.
The 2023 ASX Australian Investor Study found emerging trends such as environmental, social, and governance (ESG) investing and cryptocurrencies impacting investor decisions. Responsible investing is becoming integrated into many investment products due to rising demand, with younger investors leading the way.
Cryptocurrency has also seen increased interest, with 15 per cent of investors currently owning cryptocurrency and 31 per cent of next-generation investors holding cryptocurrency. This trend highlights the influence of social media and growing cryptocurrency communities on investment habits.
Overall, the COVID-19 pandemic has significantly influenced investment habits, particularly among younger Australians. The pandemic drove a surge in new investors, especially on-exchange investors, contributing to a 13 per cent growth in investors since 2020. Many Australians, unable to spend on travel and entertainment, boosted their savings and explored investing, with more than one million non-investors planning to start investing via on-exchange products within the next 12 months.
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