Key insights

Global capital markets have undergone a sustained fundamental shift, increasingly integrating individual investors into the financial ecosystem. This transformation has revolutionized how markets operate, establishing more accessible pathways for individuals to participate in spaces traditionally reserved for institutional and professional investors.

The 2024 Global Retail Investor Outlook, conducted in collaboration with Robinhood Markets and Boston Consulting Group, surveyed 13,000 individuals across 13 global markets, including Australia, Brazil, China, France, Germany, India, Ireland, Japan, Singapore, South Africa, United Arab Emirates, the United Kingdom and the United States. This report explores the ways that investing can serve as a tool for achieving financial goals, empowering individuals to grow their wealth through participation in capital markets rather than relying on traditional savings alone.

The 2024 Global Retail Investor Outlook identified four key structural trends shaping the retail investing landscape:

1. Investors are becoming increasingly diverse across age, geography, gender and income, demonstrating earlier interest and engagement in markets. Younger generations learn and engage in capital markets earlier than previous generations. Overall, 30% of Gen Z began investing in university or early adulthood, compared to 15% of Millennials, 9% of Gen X and 6% of Baby Boomers.

2. Between 2021 and 2024, rising inflation eroded the purchasing power of disposable income, shifting investor focus to short-term goals. Market cycles and inflation can create uncertainty and constraint for individuals; despite stocks’ potential as an inflation hedge, their volatility remains a deterrent. Across asset classes, 21% of investors avoid certain products due to unpredictability, and 40% of individuals choose not to invest because they are fearful of losing money in the market.

3. New platforms are expanding access to investment products, empowering individuals to choose from a range of strategies and instruments at various price points – including options that were previously less accessible. In total, 27% of investor respondents globally hold crypto, and 20% of Gen Z invest in derivatives compared to 7% of Baby Boomers.

4. AI has the potential to enhance individual participation in capital markets by optimizing operations, personalizing engagement and improving tools for financial education. Overall, 41% of investors are willing to trust AI-enabled chatbots with their personal information, and 42% of investors stated they would invest more if they had an AI chatbot assisting them.

The research highlights several steps stakeholders in the retail investing ecosystem can take to empower individuals:

– Developing financial products and platforms that prioritize individual investors: As new generations enter capital markets, evolving investor needs will require new financial products and platforms that expand past those traditionally tailored for institutional investors. Products that address key barriers, including uncertainty, capital constraints and market volatility, can drive inclusion, confidence and better outcomes for retail investors.

– Harnessing technology to enhance affordability and accessibility: Technology can make financial advice, portfolio building and education more accessible and affordable for retail investors. AI-driven solutions have the potential to streamline financial advisory processes, enabling portfolio design and advisory services at more accessible price points.

– Implementing policies that empower and protect retail investors: Effective policies should equip investors with the necessary tools to navigate markets confidently while encouraging innovation and safeguarding individuals. This could include expanding auto-enrolment in pensions, promoting fee-only and conflict-free advisory models, and implementing robust investor protection frameworks to help individuals manage risks in alignment with their financial goals.