The Autorité des Marchés Financiers (AMF) has published the 7th edition of its Savings and Investment Barometer on investment trends.
After the sharp fall seen in 2022, more retail investors are “planning to invest in equities in 2023.”
This renewed interest is being driven in particular “by under-35s in 2023, 43% of whom say they are interested.”
The 2023 edition of the AMF Savings and Investment Barometer shows “that interest in investing in the stock market is at its highest level since the barometer was launched in 2017.”
Based on a survey conducted “by the Audirep institute for the AMF in September-October 2023 among a sample of 2,386 people representative of the French population aged 18 and over, it shows an increase in French people’s interest in equity investments and their confidence in these products.”
In 2023, 32% of respondents say “they are interested in equity investments, 7 points more than in 2022, and 28% say they have confidence in this type of product, compared with 21% in 2022. When asked whether they might consider investing in equities over the next 12 months, 27% of French people say they intend to invest.”
This trend corresponds to “an improvement in the level of confidence expressed by a number of them regarding the evolution of their own economic and financial situation, despite current levels of inflation. Some 43% of French people now believe that equity investments will be profitable over the next 5 years. Last year the figure was 37%. But it is also driven by the interest of younger people.”
Indeed, 43% of French people “under 35 say they are interested in investing in equities, compared with 30% in 2022. Young people are also more likely to accept a small amount of risk, at a record level of 48%, 10 points more than in 2022.”
In a different vein, the Barometer also looks “for the first time at how the French perceive the main characteristics of savings accounts, real estate funds, equities and cryptoassets.”
Retail investors distinguish products more “by their level of risk than by their potential return or liquidity.”
Cryptoassets are considered risky “by 65% of French people, followed by equities, which are considered risky by 56% of those surveyed, and real estate funds by 34%. When it comes to availability of the money invested, 29% of respondents consider real estate funds to be liquid, and this is 34% for equity investments and 33% for cryptoassets.”
Overall, the average length of time the French are “willing to have their money tied up rise from 4.2 years in 2022 to 5.7 years in 2023.”
This positive trend is once again “driven by young people, 25% of whom accept a retention period of more than 10 years, compared with 12% of 35-54 year-olds.”
15% of respondents say they have already “been the victim of a financial investment scam, and among them, 35% of under-35s, compared with 6% of those aged 55 and over.”
Marie-Anne Barbat-Layani, AMF Chair, said:
“You can’t help but be struck by the number of French people who say they have been victims of financial fraud: 15%, and 35% among young people – that’s a lot! I would particularly like to warn young people about the information and offers circulating on social media, sometimes spread by influencers. Beware of scams! An investment needs to be carefully thought through, and you must inform yourself by reading the regulatory documents and consulting our website.”