Investing: Aussies putting an average of $23k into share market

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It’s been “incredibly difficult” for people to grow their savings with low interest rates – so they are turning to new avenues to boost their cash.

Close to a third of Aussies have moved money out of their savings account and into investments like shares and crypto as they chase a bigger return for their cash as low interest rates bite.

A survey from comparison website Finder revealed that the average Aussie has $23,394 invested in shares – the equivalent of 50 per cent of the amount they have in savings.

It also found 2.1 million Aussies have moved some of their savings into an investment account in the last year.

On average men have $36,004 invested in shares, compared to just $9884 for women and they also have a higher ratio of shares to savings than women, with 74 per cent as opposed to 29 per cent.

Finder investing expert Kylie Purcell said Aussies are looking for ways to maximise their returns outside of savings accounts.

“The low cash rate has made it incredibly difficult for Australians to earn interest on the money sitting in their bank accounts,” she said.

“Instead, moving a portion of savings into shares gives people the opportunity to earn a higher return. Some shares and funds also pay out dividends, which can give Aussies an extra boost of cash.”

According to the survey, 7 per cent have shifted money from savings into micro-investing apps like Raiz, and a further 7 per cent have used some of their savings to top up their super.

Another 5 per cent have moved some of their savings into cryptocurrency.

Finder’s data shows the average Australian has $904 in cryptocurrency and $259 in micro-investing apps – the equivalent to 3 per cent and 1 per cent of what they have in savings.

Meanwhile superannuation is Aussies’ biggest investment, with the average person having $118,888 in super.

Ms Purcell encourages Aussies who want to start investing to do their research first.

“Investing is a great way to increase your net wealth, but it’s important to do your research first,” she said.

“Putting all your eggs in one basket is never a good idea. Diversifying your investments between different funds and different asset classes helps to reduce risk.

“Always do your research before jumping in. If you’re a beginner and not sure where to start, ETFs (Exchange Traded Funds) are a great place to start.”