Retail investors are working hard at managing their portfolios and setting aside regular time for research and strategy, according to new investor trend research carried out by GraniteShares ETP.
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Will Rhind, Founder and CEO at GraniteShares
- Nearly half put in hours on research and more than a quarter set aside time every week to work on their portfolios
- But nearly one in five admit they trust their gut or choose shares at random
The study found nearly half of investors (45%) say they have a strong focus on research with 13% claiming to research every part of an investment before committing their cash.
The commitment to managing their investments involves putting in the hours – around 28% set aside time every week to work on their portfolio with one in eight (12%) spending at least an hour a day.
However, not all retail traders are so thorough. Around 17% say they trust their gut or choose shares to buy and sell at random. Another 25% say they do some research but rely on others for their trading strategies, while 13% say they mainly rely on recommendations and do little research.
The key source for research identified by the study is websites and recommendations from brokers or platforms. Around 23% rely on newspaper recommendations. Just one in eight base trading on social media recommendations, like Instagram and TikTok.
The study found 43% talk through their trading with partners while one in five discuss investments with friends. Only 3% discuss portfolios with investment clubs and just 5% use Reddit.
Will Rhind, Founder and CEO of GraniteShares, said: “Retail investors clearly take their money seriously, with many putting in the hours to get their decisions right. Even though some still rely on their gut, it’s heartening to know so many people take the time to discuss their choices with their trusted network.
Even within our range, we have seen evidence that investors are growing more confident. Our high-conviction ETPs have grown among more sophisticated investors, who are willing to accept higher risk for the potential of bigger rewards.”
Source: ETFWorld.co.uk
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