Are you investing like a millionaire?
Marketing Communication
The findings in this article are based on Amundi’s Decoding Digital Investing survey. It gathered the views of 4,186 retail investors across 11 countries in Europe and Asia. We set quotas by both age and gender to ensure to have a sufficient and robust sample in order to confidently assess differences between demographic groups. The survey was conducted online, in local language, for Amundi during May and June 2023. This research was undertaken by H/Advisors Cicero.
We spoke to individual investors across Europe and Asia about their approach to investing. Although there is no magic formula for success when it comes to investing in financial markets, we can look to relatively successful investors in an attempt to learn from their habits.
In Europe, four-in-five people with more than €1 million to invest (80%) are confident they are making the right savings and investment decisions – significantly higher than for all global investors (60%), according to Amundi’s Decoding Digital Investors survey.
Our research shows that this small subset of millionaire investors have honed five investment habits that, together, improve their chances of achieving strong results. No matter where you are on your investment journey – from first-time to seasoned investors – these are habits you could also consider.
The less wealthy investors we spoke to in the survey tend to invest less than half (43%) of the money they could invest, while millionaires typically allocate a healthier majority (54%) to investments. Being invested is important as it has the potential of improving your chances of building wealth and beating inflation through the power of compounding, the process by which earnings (such as capital gains or interest) are reinvested. This, in turn, could potentially generate additional earnings.
We also saw that people with less to invest are more likely to own individual stocks while millionaire investors typically have better diversified portfolios. Diversification1 can help to reduce concentration risk. That is, the risk of potential losses on a single large investment in a particular market. There are various ways to diversify including by product types, asset classes and geographies, to name a few.
There are many things to consider when choosing an investment product or provider. Our research shows that millionaire investors are most concerned about the cost of investing, with product and provider fees featuring as key considerations. Ensuring you get good value for money from your investment provider is essential to ensure you get to keep more of the investment returns that you make.
Better information and education around investing is the first step to more informed investment decisions. Despite their investment experience, millionaire investors use a wide range of educational materials and resources to stay informed.
We also see that millionaire investors are not afraid to seek the advice of a professional and neither should you be. Among millionaire investors, the survey shows that 63% currently use the services of a professional advisor – compared to only 51% of non-millionaire investors. Professional advice can help you better ensure you invest wisely, with a long-term strategy in place and have greater confidence in your investments: 83% of millionaire investors who currently use the services of an advisor are confident in their financial decision making, according to the study, compared to 73% of those who don’t.
Source: Amundi’s Decoding Digital Investors
While millionaire investors typically seek professional advice, they are also digitally savvy. Rather than adopting an either/or approach, millionaire investors are far more likely to adopt a hybrid human and digital approach to their investments.
Digital engagement not only increases exposure to possible investment opportunities but allows investors to self-execute where preferable and to more closely and easily monitor their investment performance.
None
1 or 2
3 or 4
All of them
1 Diversification does not guarantee a profit or protect against a loss.
