Yahoo Finance More UK millennials are investing in ISAs
Millennial investors are gaining confidence in their ability to invest, and making the most the tax free benefits of an Individual Savings Accounts (ISAs), according to research.
The millennial generation also known “Generation Y” group are born between 1980s and the early 2000s, making the group currently aged between 16-36.
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Findings show millennials are becoming more savvier and showing more of a willingness to invest. The Share Centre reports there is a 39% increase in the amount of trades made by those aged 18-36 in their ISAs compared to the same period last year.
Female millennials gain more confidence
While male millennials are more active in contrast female millennials are making confident strides with a 20% increase in the number of trades year on year for females.
There is not just a rise in female confidence in ability demonstrated by the number of trades, but also by the amount of money being invested with inflows jumping by 57% year on year as millennials look to take advantage of the tax free benefits of an ISA product.
FTSE 100 companies popular
The Share Centre findings show millennials either opting for relatively safe FTSE 100 big blue chips such as GlaxoSmithKline, BT and Vodafone as well as oil and gas companies Ascent Resources and 88 Energy.
Millennials become more adventurous with ISAs
Graham Spooner, investment research analyst at the Share Centre says findings indicate millennials are becoming more adventurous with their spending, perhaps indicating the adage of their generation, ‘you only live once’ is coming through to their investing portfolios.
What should millennials be investing in?
“When thinking about their future, and of course if they decide to move towards a more balanced portfolio, I would suggest that mid-cap companies could be the answer. As the blue chips of the future, mid-caps could provide millennials not only with growth potential but the element of risk that they are clearly craving, without going to the extremes,” says Spooner.
Sponer says millennials are investing in well-known, recognisable and income generating FTSE 100 companies and then going straight to the other end of the spectrum and punting on much more smaller and higher risk companies.
Written by London-based journalist Tanzeel Akhtar. Her work has been published in the Wall Street Journal, FT Alphaville, CNBC, Citywire, Euromoney, Interactive Investor.
Disclaimer: The content on this page does not constitute financial advice and is provided for general information purposes only. Nothing on this page should be regarded as an offer to conduct investment business or to buy/sell any investment.
