One in Six South Africans are Saving to Enter the Stock Market

A survey of 2,000 adults in South Africa, found  that 35 per cent are planning to start trading in stocks, shares or other investments in the future.

Three quarters (74 per cent) are confident in their ability to make smart decisions when it comes to investing, while six per cent are more ‘not confident at all’.

And 11 per cent of those who don’t currently hold investments won’t take the plunge and begin investing before they have saved at least R50k.

However, more than half (54 per cent) have invested in stocks, shares or other investments in the past.

A spokesperson for Exness, which commissioned the study, said: “We’re seeing more and more people setting money aside not just for a rainy day – but with a clear goal of investing it in the stock market.

“There’s been a real shift in how people approach their finances, with many now actively planning for long-term growth rather than just short-term spending.

“Whether it’s buying shares in companies they believe in or simply trying to make their money work harder in uncertain times, stock investing has become a much more mainstream aspiration.

“And with so many platforms making it easier than ever to get started, people are becoming increasingly confident about taking that first step.”

The study also found 25 per cent of respondents are curious, but feel under-informed when it comes to investing in stocks and shares.

And men are more than twice as likely as women to have savings put by for a future stock market investment (20 per cent of men, compared to nine per cent of women).

And while 48 per cent of those aged 18-24 haven’t yet taken the plunge, they do plan to – compared to only 34 per cent of older adults (35 to 44).

Younger would-be investors are also more confident they’d make good decisions when it came to investments, than many of their older peers.

More than eight in 10 (81 per cent) of adults under 24 would back their decision for wise investments, compared to only 64 per cent of people aged 45-54.

And while 39 per cent would trust a financial adviser the most for tips on how to play the stock market, 16 per cent would listen to a banking or trading app.

But very few would trust information found on YouTube (four per cent) or a social media feed (three per cent).

To help prepare, 71 per cent of those who’ve made investments have ‘practised’ investing with a simulation, or demo trading platform, before using real money.

With 87 per cent claiming they found this technique helpful.

Some of the top concerns people have around investing are the fear of scams or fraud (58 per cent) or making the wrong decision (44 per cent).

On the other hand, 56 per cent consider key benefits to be the potential for long term growth and 54 per cent would enjoy financial independence.

Of those who have made bought stocks and shares in the past, 34 per cent have regretted a sale, according to the OnePoll. com results.

The spokesperson for Exness added: “For many, investing in stocks represents a kind of financial independence.

“It’s no longer something ‘other people’ do—it’s something they can do too, provided they plan ahead.

“And that planning often starts with simple, consistent saving habits that grow over time into something far more empowering.”

TOP 10 BENEFITS OF INVESTING IN STOCKS AND SHARES:

1. Long-term growth
2. Financial independence
3. Turning savings into something bigger
4. Passive income
5. Learning a new skill
6. Diversifying income sources
7. Feeling financially savvy
8. Retiring earlier
9. Beating inflation
10. Getting ahead of peers

Editor: The quickest way to get investing in the Stock Market is via Fractional Share Investing through platforms like EasyEquities.

Per Kind Favour of APO

Africa Fact: Evidence discovered in 1978 showed that East Africans were making steel for more than 1,500 years: “Assistant Professor of Anthropology Peter Schmidt and Professor of Engineering Donald H. Avery have found as long as 2,000 years ago Africans living on the western shores of Lake Victoria had produced carbon steel in preheated forced draft furnaces, a method that was technologically more sophisticated than any developed in Europe until the mid-nineteenth century.”