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Kiwis embrace huge rise of self-directed investing

June 27, 2019


Kristen Lunman

Written by Kristen Lunman

Kristen is General Manager of Hatch - a digital investment platform that gives New Zealanders access to the US share markets. Powered by Kiwi Wealth, Hatch provides easy, affordable, and reliable access into the largest, most liquid share markets in the world.


Hatch GM Kristen Lunman on how tech has transformed wealth building for Kiwis

Hatch-Kiwi Wealth_Self directed investing-final

Technology means the world is now at our fingertips

The Internet has completely changed the way we live our lives.

For better or worse, across every industry, technology has had an impact on how we interact with every aspect of the world we live in, from the clothes we wear to the food we eat.

Investing has also been transformed

The world of investing is no exception. Technology has completely democratised wealth building and management.

The digital generation makes purchase decisions based on peer recommendations and information from their own research. Armed with this knowledge, they’re now able to access share markets at their fingertips and execute trades as and when they see fit.

However, this is also about financial empowerment. With constant and instant access to their portfolios, investors can learn while doing.

The rise of a modern investor

So, what exactly is self-directed investing?

Self-directed, or DIY, investors choose to manage their portfolios, carry out research, and make investment decisions - usually through low-cost investing platforms.

Self-directed investors have the desire to craft their investment plans based on their long-term goals and risk appetites, the willingness to perform research, and the confidence to make their trades on their own.

Self-directed investing: more than just a trend

We’re witnessing a new generation of investors who want to manage their investments.

Just look to Australia for proof: SelfWealth, Stockspot, and Raiz all have their fair slice of the market. In 2017, over 600,000 Australians had made use of an online investing platform.

In the US, Robinhood has just jumped to over 4 million active users in under five years, eclipsing E*TRADE’s 3.5 million. Even traditional banks such as JP Morgan Chase are responding by slashing fees and revamping technology to serve this new, engaged investor better. In 2014, according to Aite Group, close to a quarter of all US adults with internet access were online retail investors, that’s an individual trading population of 54 million!

Given the rise of new offerings and platforms, such as robo-advisers, growth in the DIY sector has been astounding. Millennials are the biggest adopters of robo-advice, an industry that is expected to surpass $1.5 trillion in assets by 2020.

Most investors keep things simple by buying diversified funds that they believe will perform over time, adding more interesting, values-based investments around the edges.

The rise of Exchange Traded Funds (ETFs) has given investors the ability to run diversified, low-cost portfolios from the largest fund managers in the world like Vanguard and BlackRock.

This is just the beginning

Self-directed investing should open a world of investment opportunities.

Kiwi Wealth’s digital investing platform Hatch is the result of several months of customer interviews where Kiwi investors told us again and again why they don’t invest in global share markets; they don’t invest overseas because they can’t to do so on their terms.

At Hatch, we provide self-directed investors with better, faster, and more affordable access to world-class investments.

Investors can invest in the most recognisable brands from Amazon to Slack, the largest ETFs in the world, but also more niche, thematic funds like clean energy or robotics. With fractional investing, investors can buy as much or as little of a share. It’s a brave, new investment world out there.

Intrigued? Join the revolution.

 

 

Tags: Investing, Hatch

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