Retail investors in France, an emerging species?

A man presses a button and suddendly, a galaxy appears as a representation of the emerging activity of the retail investors in France

The AMF (Autorité des Marchés Financiers) published a study this week in March 2023 which indicates an emerging activity of retail investors in France in 2022.

Read on to find out all the interesting facts.

2.1% of the population and many men…

In 2022, retail investors represented a whopping 2.1% of the French population. Between 2019 and 2022, we went from 1.15 to 1.43 million active investors. This is certainly an increase but… in reasonable proportions!

The proportion of men is much higher. 70% versus 30%.

In comparison, the proportion of individual investors in Europe would fluctuate around 4% (Source: Eurofi – February 2022) but more than 20% in the US. In Finland, the figure would be close to 35%.

Younger and younger investors

Since 2020, according to the AMF study, there has been strong growth in the number of investors under the age of 35.

The number of transactions per year increases with age up to 54 and then decreases. However, it remains modest, with an average of 2 to 3 transactions per year. The number is slightly higher for male investors.

A strong appetite for equities

The vast majority of transactions (78%) are in equities, followed by ETFs and complex instruments. The myth of the stock trader thus persists.

Bonds, which are a less risky form of investment, are only in fourth place. The persistence of low interest rates during the period has played its part in that.

Four interesting lessons for financial education

Despite these figures indicating this emerging trend, the share of retail investors in France remains extremely low compared to Europe. There are several reasons for this low figure, but the lack of financial literacy and interest in these subjects surely plays a role. Financial education is therefore more necessary than ever.

Paradoxically, the most widely used financial product is also one of the riskiest: shares. Here too, better education of future investors could be beneficial.

The fact that the proportion of young investors is increasing is encouraging. The new online brokerage schemes certainly play a role. Financial education should also be targeted at this population. We know that their needs and especially their way of learning are different. Gamification is more necessary than ever.

Finally, gender equality has not crossed the investment border either. Here too, personalised financial education can play a positive role.

Now more than ever, investors need solid financial education to make better decisions, better suited to their preferences. Please feel free to make an appointment in order to discover the EDUprofiler, our gamified financial education platform.