How the new generation of investors can keep on the right track

“Fifty-seven percent of respondents to our latest customer survey say that investing is their main hobby, a figure that rises to 63% among our most experienced and confident customers,” says Russ Mould, AJ Bell Investment Director. “However, our newer clients are more interested in travel, food and books than the latest results from Tesco or interest rate statement from the Bank of England and clearly see investment as a matter of financial necessity than an intellectual challenge or pleasure. For these people, tracker funds or exchange-traded funds are one option to consider as a potential first step into the financial markets.”

Notes for Editors

• The results of the 2014 AJ Bell Youinvest customer survey are based on 1,345 responses.
• Across all of those customers to reply, the most popular hobbies following investing are travel (47%), current affairs (45%), books (39%) and food (37%). Reading, dining, health and fitness, wine and football also feature in the top-ten list of interests.
• Tracker funds and Exchange-Traded Funds (ETFs) are known as 'passive' funds. They mirror the performance of a stock market index or basket of shares and aim to provide cost-effective, broad exposure to a market, sector or investment theme. This contrasts with actively-managed collectives, where a fund manager selects the portfolio according to a defined mandate and seeks to outperform an index or benchmark in return for what is usually a higher annual management fee.
• When investigating tracker or ETF, investors should first assess whether the underlying market followed by the fund is suitable for their overall investment strategy, risk appetite, time horizon and target returns. Other issues to then assess are the cost, tracking error and the method used to mirror the performance of the underlying assets.