How Australians invest in 2025: and what’s holding us back

• Start small but start early – or as early as you can – to give your investments maximum time to grow.
• Set your investment goals and use these to guide your investment decisions as a longer-term view may reduce the importance of short-term volatility.

Australians expect growth from their investments, but fear risk. This may be leading many to de-prioritise higher-growth, higher-risk investments such as shares in favour of low-risk, low-growth investments such as cash in the bank.

For example, while many Australians already have some exposure to shares – either directly, or via super, exchange-traded funds (ETFs) or managed funds – the vast majority (87%) express a preference for moderate or low-risk investment options.

The main reason given for investing in high-interest savings accounts is to increase the value of money over time, or to generate an income, despite the relatively low returns that cash offers. 

On the flipside, while we crave security, we also flirt with the thrill of speculation: despite their volatility, 13% of all Australians hold cryptocurrencies as an investment, making it the sixth most popular investment type.

However, high net wealth investors are more likely to invest in shares: the percentage of these investors to hold international shares is more than double the average at 16% compared with 6%; they are 91% more likely to hold managed funds; and they are also 83% more likely to hold Australian shares. 

They’re also almost twice as likely as the average Australian to invest in ETFs as a means of reducing risk (31% to 16%), and much less likely than average to invest in government bonds for that purpose.

However, the well-to-do are also more likely to be concerned about market volatility – and a large minority (45%) keep money in cash.

• Carefully assess your risk appetite and weigh it against your investment time frames and your goals; you may be able to grow your investments in some areas, depending on your investment timeframe, without taking on too much risk.
• If you find it difficult to balance risk and reward, consider seeking financial advice to help you balance more complex portfolios without sacrificing more growth than necessary. 

While super is the largest asset many Australians have, only 54% of us ‘definitely’ consider it to be an investment.

In fact, more people say they’re interested in investing generally (75%) and keen to know more (63%) than have chosen how their super is invested (61%). 

Interestingly, the older we get, the more likely we are to have chosen how our super is invested.

Wealthier investors are the most likely to have made a proactive choice about how their super is invested (81% compared with the overall average of 61%), but that still leaves one in five who haven’t.

Australians want the security and growth that comes from smart investing, but many still turn to friends, family, or colleagues for guidance – potentially missing out on the strategic advantages, and tailored strategies that financial advice can deliver. Professional financial advice comes in many shapes and sizes: our customer guidance team can help put you in touch with the advice option that’s right for you.