This report provides a deep dive into the US investment consumer. We explore the consumer trends shaping investment and reveal the strategies that build investor trust. First-time investors as well as seasoned investors are covered, with real insight into their attitudes and views, alongside barriers to investment and motivations for investing.

Below, we summarize the key areas covered and offer handpicked insights from the report itself.

Key Areas Covered

  • Investment product ownership / who owns what.
  • Reasons for investing / what motivates consumers to invest.
  • Channels used for investing/investment advice / where consumers go.
  • The most important factors in choosing an investment platform.
  • Generational differences in investment behavior.

Investment Consumer Overview: First-time vs Seasoned

Reflected in their current holdings (crypto/NFT), younger consumers tend toward riskier, short-term investments. Whereas, seasoned investors are more conservative. This consumer segment measures up as you might expect, as most (80%) invest as a means to retire. 

Important to consider is the rise of Gen Z investors, who are drawn to TikTok for guidance (see our Marketing to Gen Z Report). While investing mainly in crypto, Gen Z (and Millennials) also show promise for fractional shares – an inexpensive and flexible offering that can cater to them.

How to Attract Investors: Case by Case Analysis

  • Experience/life stage reflects on investment goals. It comes down to short and long-term aspirations for investors, with younger/first-time investors going for a quick, low-stake buck. Brands can tailor their solutions accordingly. Relevant stakeholders should seek to marry the concepts of debt management and saving for retirement under one umbrella when reaching younger segments – either through 1-on-1 counselling or digital money management tools.
  • While Reddit’s WallStreetBets captured mainstream attention for meme stocks, it’s under-utilized for investment advice compared to other platforms. YouTube, Facebook, and Instagram still top the podiums (see our Social Media Market Report). However, brands can benefit from Reddit’s lack of saturation by creating dedicated subreddits to engage with investors. Fidelity is a successful example of doing this already, with nearly 61,000 members.
  • There is a growing trend among affluent investors to use advisory services from financial institutions other than their primary bank. Rewards programs, such as J.P. Morgan’s Wealth Plan and Bank of America’s Preferred Rewards program, can help retain investment clientele by offering clear value to consumers (our Banking Experience Market Report may provide more value here).

Want to know more? The full report reveals our investment consumer survey figures, alongside expert-analyzed opportunities to respond effectively. Alternatively, browse our Finance Market Research.

Additional Features Included in Your Report

Different Digital Formats: PDF for conveniently sharing with your team, PowerPoint for quickly including in your presentation, as well as an Infographic and an Excel Databook.

Mintel’s Clients Portal: Our portal offers instant access to actionable analysis and trends pieces relevant to your industry that are published almost daily. You can also browse for more market research reports.

Expert Analysis from a Finance Specialist

Leading finance analyst Amr Hamdi delivers commentary on the US investment consumer, providing pivotal insight into the landscape of investment.

While the macroeconomic challenges of 2022 have quelled investor confidence, the US has continued to make strides and seen considerable improvements across various areas of its economy. Should these improvements be sustained, and the coveted soft landing be achieved, investor confidence could be reignited alongside an influx of younger, first-time investors more assured coming into the market.

Amr Hamdi, Finance Analyst for Mintel

 

Amr Hamdi
Senior Finance Analyst

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  1. Overview

    • What you need to know
    • This Report looks at the following areas
    • Market context

  2. Executive Summary

    • Top takeaways
    • Consumer trends
    • Asset ownership is intimately tied to consumers’ life stage
      • Figure 1: Investment product ownership across traditional assets, by generation, 2023
    • Investing experience drives investing motives
      • Figure 2: Investing motives, by investing experience, 2023
      • Figure 3: Fidelity email, 2023
      • Figure 4: Vanguard email, 2023
    • YouTube, Facebook, and Instagram are the top three most used social media channels for investing advice
      • Figure 5: Social media platforms used for investing advice, 2022 and 2023
      • Figure 6: Usage of social media for investing advice, by age, 2023
    • Competitive strategies
    • Fidelity sparks the interest of first-time investors through welcome bonuses and bundles
      • Figure 7: Fidelity Starter Pack, paid Instagram ad, 2023
      • Figure 8: Interest in bundling financial products, by generation, 2023
    • Kraken highlights its commitment to transparency to improve investor confidence in crypto
      • Figure 9: Kraken paid Twitter ad, 2023
    • Investment brands must showcase greater diversity in their messaging to better reach multicultural segments
      • Figure 10: Charles Schwab paid Facebook ad, 2023
      • Figure 11: Sources of investing information, by race and ethnicity, 2023
    • Market predictions
      • Figure 12: Investment outlook, 2023-28
    • Opportunities
    • Banks have a retention issue when it comes to advisors and their investment clientele
      • Figure 13: Use of financial advisors outside primary bank over time, by household investable assets, 2022 and 2023
      • Figure 14: Use of financial advisors, by investing experience, 2023
      • Figure 15: Bank of America Preferred Rewards Platinum Honors tier, 2023
    • The investing gap between men and women persists – but brands can still remedy this
      • Figure 16: Investment product ownership, by gender, 2023
      • Figure 17: Comfort over investing knowledge, by gender, 2023
      • Figure 18: Fidelity paid Instagram ad, 2023
      • Figure 19: Ellevest Instagram video, 2023

  3. Market Drivers

    • Continued economic improvement could drive greater investment confidence and participation
      • Figure 20: Consumer Price Index change from previous period, 2022-23
      • Figure 21: Unemployment and underemployment, 2007-23
    • A high rate environment will sustain investor interest in high-yield assets in the short-term
      • Figure 22: Federal funds effective rate, 2022-23
    • Bank runs, US Dollar struggles could be a boon for crypto
      • Figure 23: Top five worst bank failures in US history, 2023
      • Figure 24: US Dollar Index, 2022-23

  4. Competitive Strategies and Market Opportunities

    • Fidelity enticed first-time investors with welcome bonuses and bundle deals
    • Kraken bolstered its commitment of creating a more transparent environment to bolster investor trust in the cryptocurrency space
    • In order to make a larger impact with multicultural audiences, investment brands must broaden the diversity of their advisory services messaging

  5. The Investor – Fast Facts

  6. Investor Profile

    • Half of consumers are seasoned investors, three in ten are intermediate investors, while 21% are first-time investors
      • Figure 25: Investing experience, 2023
    • First-time and intermediate investors skew significantly younger
      • Figure 26: Investing experience, by age, 2023

  7. Investment Product Ownership

    • Seven out of ten consumers own at least one type of investment
      • Figure 27: Any investment product ownership, by gender, generation and household income, 2023
    • Stocks, mutual funds are the most popular investments owned
      • Figure 28: Investment product ownership over time, 2022 and 2023
      • Figure 29: Investment product ownership, by household investable assets, 2023
    • Seasoned investors are most drawn to traditional assets, while first-time and intermediate investors are open to taking riskier bets via crypto and NFTs
      • Figure 30: Investment product ownership, by investing experience, 2023
      • Figure 31: Cryptocurrency ownership over time, by investing experience, 2022 and 2023

  8. Barriers to Investing

    • Lack of funds and investing knowledge are the driving barriers to investing
      • Figure 32: Barriers to investing over time, 2022 and 2023
      • Figure 33: Interactive Brokers paid Twitter ad, 2023
    • Younger consumers the most likely to cite lack of knowledge for not investing
      • Figure 34: Barriers to investing, by age, 2023
      • Figure 35: Acorns paid Instagram ad, 2023
      • Figure 36: Acorns email, 2023

  9. Investing Motives

    • For nearly 60% of consumers, long-term gains are the primary motive behind their investments
      • Figure 37: Investing motives, 2023

  10. Sources of Investing Information

    • Nearly 40% of investors use financial advisors for investing advice
      • Figure 38: Sources of investing information, 2023
    • Boomers rely heavily on financial advisors for advice, while younger investors favour social media and family/friends
      • Figure 39: Sources of investing information, by generation, 2023

  11. Channels Used to Manage Investments

    • Self-directed brokerage accounts, financial advisors are the most utilized avenue for managing investments
      • Figure 40: Channels used to manage investments, 2023
    • Robo-advisor usage is down across all age groups, but especially younger investors
      • Figure 41: Use of robo-advisors over time, by age, 2022 and 2023
      • Figure 42: Vanguard hybrid robo-advisor, paid Facebook ad, 2023

  12. Factors in Choosing Investing Platform

    • Reputation and fees are critical acquisition factors
      • Figure 43: Factors influencing choice of investing platform over time, 2022 and 2023
      • Figure 44: Importance of fees when choosing an investing platform, by age, 2022 and 2023
      • Figure 45: Fidelity paid Facebook ad, 2023
    • Digital capabilities is a key factor in choice of provider for both Millennials and Gen Xers
      • Figure 46: Factors influencing choice of investment platform, by generation, 2023
      • Figure 47: Vanguard email, 2023

  13. Interest in New Investments

    • Stocks, fractional shares, and bonds remain the most intriguing investments for consumers
      • Figure 48: Interest in new investment types over time, 2022 and 2023
    • Barring stocks, Gen Zers and Millennials are most interested in fractional stock ownership
      • Figure 49: Interest in new investment types, by generation, 2023
      • Figure 50: Charles Schwab paid Facebook ad, 2023
    • Over half of 18-44 year olds are interested in crowdfunded real estate
      • Figure 51: Interest in crowd-funded real estate, by age, 2023
      • Figure 52: Fundrise paid Facebook ad, 2023

  14. Attitudes toward Investing

    • Affluent investors exhibit greater risk tolerance when investing
      • Figure 53: Attitudes toward low-risk investments, by household income, 2023
      • Figure 54: Percentage of seasoned investors, by household investable assets, 2023
      • Figure 55: Florida Credit Union direct mail piece, 2023
    • More than 7 in 10 consider crypto a risky investment, but over a third would use it as a payment method
      • Figure 56: Attitudes toward cryptocurrency, by generation, 2023
      • Figure 57: Mastercard Crypto Card Program, 2023
      • Figure 58: Coinbase Commerce, 2023
    • Over half would pay a premium for a human advisor over a robo-advisor
      • Figure 59: Attitudes toward robo-advisors, by household income, 2022 and 2023

  15. Appendix – Data Sources and Abbreviations

    • Data sources
    • Consumer survey data
    • Marketing creative
    • Abbreviations and terms
    • Abbreviations

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