Luxembourg residents have become more involved in financial investing as result of the coronavirus crisis
According to the results of a survey ordered by ING on the behaviour of consumers during the crisis, 21% of Luxembourg residents are now more interested in investment funds. An in-depth analysis of the details shows that interest is greater among 18 to 34-year-olds:
There is also another interesting phenomenon: while residents with Luxembourg nationality account for only 13% of those saying their interest in investing has grown in the current context, 30% of foreigners stated that they intended to explore the alternative to savings.
ING customers have invested more than they have withdrawn
“At the start of the crisis, we noticed a significant increase in investment activity by private investors, including both existing and new investors”, explains Sébastien Mercier, manager of the investment activity at ING Luxembourg. “It's clear that investors are increasingly aware that you shouldn’t panic when the markets go down, but that you need to stay focused on a long-term objective. Others take advantage of the situation to invest when prices are down, betting on a correction when markets rise. It’s essential, as always in investing, to think long term”, he adds. Investors are already well aware of this.
Decrease in investment thresholds
Sébastien Mercier believes that both savings and investment will become even more important in the context of the COVID-19 crisis. A more in-depth study of the change in deposits and savings deposits with ING customers provides the corresponding conclusions. Not only is demand for investment funds very strong, savings accounts are also growing, according to Mercier.
The challenge now is to help non-investors combine savings and investment to better manage their financial assets. “There are two important considerations: 1. what portion of my money should remain available on a savings account, in reserve, and for my short-term needs and 2. What amount can I invest differently for longer-term needs”, explains the investment expert. Solutions already exist for small investors. “Everyone has to be able to invest in securities”, he affirms. Alternatives that make investing accessible to a large portion of the population already exist. Beginners and small investors can start with €50 a month.
About the survey
The survey was done in Luxembourg from 27.04.2020 through 04.05.2020 by TNS ILRES for ING Luxembourg. The survey included 500 people 18 and over.
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