Johannesburg: A recent survey involving 2,000 adults across South Africa highlights a growing trend towards stock market investment, with 35% of respondents expressing plans to start trading in stocks, shares, or other investments in the future. Confidence levels are notably high among potential investors, with 74% feeling assured of their ability to make smart investment decisions, although 6% admit to not feeling confident at all.
According to African Press Organization, the survey reveals that 11% of those without current investments are waiting until they have saved at least R50,000 before entering the stock market. The aspiration to invest in stocks has become more mainstream, with many individuals aiming to make their money work harder amidst uncertain economic times. The availability of platforms simplifying the process has bolstered confidence in taking the initial step into stock investment.
The research further indicates that 25% of respondents are curious but feel under-informed about stock and share investments. Gender differences are apparent, with 20% of men having savings earmarked for future stock market investments compared to just 9% of women. Age also plays a role, as 48% of those aged 18-24 plan to invest, compared to 34% of those aged 35 to 44.
A shift in financial planning is evident, with more individuals focusing on long-term growth rather than short-term spending. Younger investors, in particular, display greater confidence in their investment decisions, with 81% of adults under 24 backing their decision-making ability compared to 64% of those aged 45-54.
The survey highlights that 39% of potential investors would trust financial advisers for stock market advice, while 16% would rely on banking or trading apps. Skepticism towards information from YouTube and social media is notable, with only 4% and 3% respectively trusting these sources.
To mitigate risks, 71% of those who have invested practiced using simulation or demo trading platforms before committing real funds, with 87% finding this method helpful. Key concerns include fear of scams (58%) and making incorrect decisions (44%), while the potential for long-term growth (56%) and financial independence (54%) are seen as significant benefits.
Reflecting on past experiences, 34% of individuals who have bought stocks and shares have regretted a sale. A spokesperson for Exness commented that stock investment now represents a path to financial independence for many, achievable through careful planning and consistent saving habits.