Over two fifths (44%) of the British public think investing is an activity reserved only for the rich, according to new research* by global multi-asset investment platform eToro.
This belief could be holding back thousands of potential investors, with the research also highlighting that two thirds (66%) of UK adults say they would be interested in investing their money to some extent.
Banks and financial advisers are reinforcing this investment divide and discriminating when it comes to investment opportunities. Just 15% of UK adults earning less than £30,000 have been given the opportunity to invest by their bank or a financial adviser, compared to 28% of those earning over £30,000 and 41% of those earning over £60,000.
Iqbal V. Gandham UK Managing Director at eToro said: “The rich are taught to invest and the rest are told to save. Forget the idea that most Brits don’t care about investing. This research proves people from all walks of life want to get involved. The issue is that many are not being given the opportunity which perpetuates the myth that investing is something exclusive – the preserve of the rich.
“Rather than opening doors, many banks and financial advisers are actually reinforcing this myth. We need to remove these barriers which are preventing many from accessing the opportunity to make more significant returns through investing. Thanks to new platforms and technology, investment opportunities are now more accessible and affordable.”
More than a quarter of British adults don’t know enough about investing
Over a quarter (28%) of UK adults say they don’t have any investments because they don’t know enough about investing. This is the case for 29% of those earning under £30,000 and 27% of those earning over £30,000: highlighting how widespread this perceived lack of knowledge is and why it is such a key barrier to investing.
Almost half (47%) of adults say that they don’t have enough money to invest. While this rises to 54% of those earning under £30,000, 40% of those earning between £30,000 and £60,000 feel the same as do 38% of those earning over £60,000. So regardless of how much money you earn, there is still a feeling, by many, that they don’t have enough to invest.
Iqbal V. Gandham, UK Managing Director at eToro said: “It’s clear many people think investing is simply not for them. They believe that they don’t have enough money, they don’t know enough and they don’t know where to start. As an industry we need to work harder to correct these misconceptions.
“We need to work harder to engage consumers and encourage an investing culture in the UK. It’s time to bring back Sid. The 1986 campaign led to a wave of first-time shareholders in the UK. It captured the public’s attention and showed that everyone could invest. Investing should not be seen as the preserve of the wealthy or something that is too complicated for the average man on the street. We need to get Britain investing.”