A survey carried out by the European investment platform Scalable Capital analyzes the investment preferences of Spaniards compared to citizens of five other European countries.
7 out of 10 Spaniards have some investment product, the most widespread being paid savings accounts and pension plans.
Madrid, November 22, 2023.- Seven out of ten Spaniards (75%) are not satisfied with saving, but are concerned about putting their money to work to obtain a benefit from that saving effort. More than 20% already invest in stocks, despite the fact that it is a characteristic of our country to prioritize investment products with a low risk profile and low profitability, such as paid savings accounts or pension plans.
The youngest respondents are those who invest the most in stocks or #ETF (28.4%). This follows from a survey carried out by the European investment platform Scalable Capital to analyze the investment preferences of citizens of six European countries (Spain, Germany, Austria, Netherlands, Italy and France).
This consultation, in which 1,000 Spaniards over 18 years of age have participated, reveals that, after savings accounts (43.8%) and pension plans (34.9%), Spaniards turn to the capital market for their investments. 22.3% invest in #criptomonedas , followed by 21.2% who do so in stocks and 20.7% who opt for funds.
Other traditional products, such as fixed income bonds and real estate investments, are around 11%, while what could be considered the most innovative investment vehicle, exchange-traded funds or ETFs, reach 6%. The figure shows great growth potential, if we compare it with other countries in which the product was introduced before (the European average is 15.2%, and in countries like Germany penetration reaches 28.1%).
Preferences by age
If we analyze investment preferences by age group, we find that the new generations of Spaniards, Zetas and millennials (under 35 years of age), show a greater interest in the capital market: 28.4% invest in stocks or ETFs, 7% above the national average, although still some distance from the European average (36.7%) and the average for Europeans of the same age (47.3%).
If we talk specifically about stocks, it is evident that knowledge about this type of investments is more widespread among Spaniards: one in four between the ages of 18 and 44 invests in stocks. The general Spanish average is 21.2%.
With regard to ETFs, the Europeans who most bet on this investment product are those between 25 and 34 years old, reaching almost, in the case of Spain, 10%, a percentage not so far from the average. European for that age group of 16.6% (the general average in Europe is 10.3%).
“Investing in the capital markets is essential if we want to mitigate the effect of inflation, which will 'eat' a good portion of our capital if we limit ourselves to depositing it in a savings account. While it is true that products such as ETFs have arrived later in the Spanish market, more and more small investors are discovering their advantages. The main one: diversify your investments at a reduced cost,” explains Adrian Amorin, country manager for Spain at Scalable Capital.
Motivations and barriers to investment
For almost half of Spaniards, the main reasons for investing are to have extra money for retirement and to increase their financial security. Other reasons mentioned point to the objective of alleviating the effect of inflation or accumulating capital for a large outlay, such as a property, a car, studies or trips.
On the other hand, according to the Scalable Capital survey, there are 25% of Spaniards who do not currently have any investment product (although 9.4% intend to do so later). The main barrier to entry cited is the lack of sufficient income or savings to invest, followed by a lack of financial knowledge and the perception that investing is too risky.
“There is still the perception that investing in the capital market is not for everyone, that you need to have a lot of knowledge and a lot of money. What we are trying to do from platforms like ours is, above all, to make it easy, and also to make it affordable for any pocket, allowing you to invest from 1 euro. The best thing is to start as soon as possible, with the amounts we can afford, to take advantage of the advantages of long term and compound interest,” Adrián Amorín emphasizes.
