866-997-4948(US-Canada Toll Free)

Investment Trends - US - February 2016

Published By :

Mintel

Published Date : Feb 2016

Category :

Banking

No. of Pages : N/A

The economy is strengthening, the stock market has been volatile, and interest rates remain low. The recession hit portfolios hard, and many people adjusted their investing behavior, with some becoming more aggressive and others more conservative. Different generations have different investment goals and allocate their investment portfolios accordingly. This report will examine how investors view investing whether

Table of Content

Overview

What you need to know
Definition

Executive Summary

The issues
A disconnect that indicates lack of understanding
Figure 1: Attitudes toward investing, December 2015
Ownership of financial assets is increasingly concentrated
Figure 2: Family financial holdings, selected years 1989-2013
Only one-third have a tax-advantaged retirement account
Figure 3: Ownership of tax-advantaged retirement account, by demographic segments, December 2015
The opportunities
Robo-advisers balance requirements accessible to many
Figure 4: Reason for not having an investment account, by gender and marital status, December 2016
Millennials are looking to invest more
Figure 5: Future investment plans, by generation, December 2015
Banks have an opportunity with Millennials
Figure 6: Location of non-retirement accounts, Millennials, December 2015
What it means

The Market – What You Need to Know

Total net assets of investment companies tops $18 billion
Number of investment firms is falling

Market Size

Total net assets of investment companies tops $18 billion
Figure 7: Total net assets of investment companies, 2991- 2014
Change in financial asset ownership
Figure 8: Percentage of families holding financial assets, by type of asset, selected years 1989-2013
While some families have more assets, most have less
Figure 9: Family financial holdings, selected years 1989-2013

Market Breakdown

Number of investment firms is falling
Figure 10: Number of investment firms, 1997 - 2014
Equities dominate mutual funds
Figure 11: Breakdown of mutual funds, 2014
ETFs continue to challenge mutual funds
Figure 12: ETF market, 2005 - 2014

Market Factors

Disposable income is increasing, personal savings is increasing more
Figure 13: Disposable personal income (DPI), personal savings, personal savings as a % of DPI
Aging of America influences investments
Figure 14: Willingness to trade risk for reward, by generation, December 2015

Key Players – What You Need to Know

A strengthening stock market
Retirement confidence is increasing
Industry is losing advisers
The growth of robo-advisers
Changing fee structures to attract Millennials
Gift cards for stock make investing more accessible

What’s Working?

The stock market has been strong
Figure 15: DJIA, monthly averages, Jan. 1, 2011-Jan. 1, 2016
Retirement confidence is increasing
Figure 16: Percentage of workers who are confident about having enough money for a comfortable retirement, 2008-2015

What’s Struggling?

Industry is losing advisers
Figure 17: Want to work with advisers like themselves, by generation, October 2015
Investors are mixed on the need for advisers
Stock ownership is declining
Figure 18: Percentage of families who own stock either directly or indirectly, selected years 1989-2013

What’s Next?

The growth of robo-advisers is disrupting the industry
Figure 19: Use of robo-advisers, by type of investment account, December 2015
Figure 20: Use of robo-advisers, by generation, December 2015
Figure 21: Vanguard Personal Advisor Services and Betterment online ads, 2015
Human advisers are still in demand
Changing fee structures to attract Millennials
Figure 22: Reasons for not having an investment account, December 2015
Gift cards for stock make investing more accessible

The Consumer – What You Need to Know

Most consumers have some type of investment account
Millennials prefer to hold non-retirement investment accounts at banks
Retirement contributions are steadier than non-retirement contributions
Hispanics and non-Whites make their own investment decisions
Millennials are optimistic and want to invest

Investment Account Ownership

About half of consumers have some kind of investment account
Figure 23: Investment account ownership, December 2015
Blacks are less likely to have any type of investment account
Figure 24: Investment account ownership, by race, December 2015

Location of Investment Accounts

Institutions have to fight harder for non-retirement accounts
Figure 25: Location of investment accounts, by type of investment account
Millennials prefer banks for non-retirement investing
Figure 26: Location of non-retirement investment accounts, by generation, December 2015
Self-directed accounts are more popular among men
Figure 27: Location of non-retirement investment account, by gender and age, December 2015

Why Consumers Don’t Have an Investment Account

Most feel they don’t have enough money
Figure 28: Reasons consumers don’t have an investment account, by gender, December 2015
Women’s interest in investing grows with age
Figure 29: Reasons for not having an investment account, by gender and age, December 2015
Once household income reaches $75K, lack of money is less a reason for not having an investment account
Figure 30: Reasons for not having an investment account, by household income, December 2015
Fear of risk impacting decision to invest

Investment Account Balances

Balances in retirement and non-retirement accounts are the same
Figure 31: Amount in investment accounts, December 2015
Women lag men in retirement and non-retirement account savings
Figure 32: Total amount in non-retirement accounts, by gender, December 2015
Figure 33: Total amount in tax-advantaged retirement accounts, by gender, December 2015
Retirement contributions are steadier than non-retirement contributions
Figure 34: Contributions to investment accounts, by gender, December 2015
Hispanics are not saving
Figure 35: Investment account contributions, by Hispanic origin, December 2015

Engagement in Investing

Men are more interested and engaged in investing than are women
Figure 36: Engaged in investing, by gender, December 2015
Engagement increases with investment account balance
Figure 37: Engagement with investing, by non-retirement investment account balances, December 2015
Hispanics and non-Whites make their own investment decisions
Figure 38: Engaged in investing, by Hispanic origin and race, December 2015

Changing Investment Goals

Asset growth or income?
Figure 39: Investment goals, by generation, December 2015
Investment goals differ with income
Figure 40: Investment goals, by household income, December 2015
How investors’ goals have changed

Changing Investment Strategies

Men are more likely to change strategies
Figure 41: Changing investment strategies, by gender, December 2015
Millennials are active investors
Figure 42: Changing investment strategies, by generation, December 2015

Future Investment Plans

Women need to be encouraged
Figure 43: Future investment plans, by gender, December 2015
Millennials are optimistic and want to invest
Figure 44: Expectations of growth, by generations, December 2015
Figure 45: Future investment plans, by generation, December 2015
Hispanics are planning to be more active in investing
Figure 46: Future investment plans, by Hispanic origin and race, December 2015
Parents are more likely to be aggressively investing
Figure 47: Future investment plans, by parental status, December 2015

Investment Strategies

Income drives investment goals
Figure 48: Investment goals, by household income, December 2015
Men are being more cautious than women
Figure 49: How investment strategy has changed, by gender, December 2015

Attitudes toward Investing

Millennials want the benefits of investing – but are uncomfortable with it
Figure 50: Attitude toward investing by generation, December 2015
Hispanics are relying on investing for wealth
Figure 51: Attitude toward investing, by Hispanic origin, December 2015
Younger men, older women are interested in socially responsible investing
Figure 52: Importance of socially responsible investing, by gender, December 2015
Hispanics want to invest in causes
Figure 53: Importance of socially responsible investing, by Hispanic origin, December 2015

Cluster Analysis

Cluster Methodology
Figure 54: Investor clusters, December 2015
Cluster 1: Disconnected Worriers
Demographics
Characteristics
Opportunity
Cluster 2: Young Optimists
Demographics
Characteristics
Opportunity
Cluster 3: Confident Independents
Demographics
Characteristics
Opportunity
Cluster Characteristic Tables
Figure 55: Investment account ownership, by target cluster, December 2015
Figure 56: Location of non-retirement investment account, by target clusters, December 2015
Figure 57: Location of tax-advantaged retirement account, by target clusters, December 2015
Figure 58: Total amount in non-retirement account(s), by target cluster, December 2015
Figure 59: Total amount in tax-advantaged retirement account(s), by target cluster, December 2015
Figure 60: Investment behaviors, by target cluster, December 2015
Figure 61: Future investment plans, by target cluster, December 2015
Figure 62: Attitudes toward investing, by target clusters, December 2015

Appendix – Data Sources and Abbreviations

Data sources
Sales data
Consumer survey data
Consumer qualitative research
Direct marketing creative
Abbreviations and terms
Abbreviations
Terms

List of Table

NA

Make an enquiry before buying this Report

Please fill the enquiry form below.

  • Full Name *
  • Your Email *
  • Job Title
  • Company *
  • Phone No. * (Pls. Affix Country Code)
  • Message
  • Security Code *

Upcoming Reports

  • Sugar and Gum Confectionery - UK - January 2015

    Rising dental health concerns can create an opportunity for chewing gum brands. Currently much of the marketing for sugar-free gums centres around fresh breath, however, the dental health benefits, particularly for children, could warrant more focus. Though explored internationally, tooth-friendly gums tailored for children remain rare in the UK market....