Robocash reveals rise in investor wealth
The net wealth of European investors has more than doubled during the 21st century, peer-to-peer lender Robocash has revealed.
According to new research carried out by the firm, by the end of 2022 the average European resident had net assets valued at €50,000. Furthermore, allocations towards alternative sources of financing are growing.
By the beginning of the 21st century, the average European had assets worth €23,500. However, Robocash pointed out that the cost of living rises mean that the increase in wealth is not as dramatic as it may appear.
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“It is important to remember though that the price of goods and services is growing day to day because of inflation, so the real value of assets and their purchasing power are gradually falling,” explained Robocash analysts.
“Hence, at current prices, the value of the assets has increased by 113 per cent, but if we take into account the prices of the year 2000, we’d be looking at 28.3 per cent growth in real value.”
The analysts also noted that conservative investment options accounted for more than half of all investor holdings. Meanwhile, riskier instruments such as unlisted and listed shares, investment fund shares and units are rapidly declining along with debt securities.
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“This is probably strongly related to the European mentality and cautious attitude to monetary risks,” said the analysts.
However, investments in ‘other equity’ have increased by 5.5 per cent since 2000, which Robocash believes is due to the rise of alternative options such as P2P lending and cryptocurrency.
“Trying to protect their capital against relatively high inflation both in the early 2000s and in the last three years, the average European investor is looking for higher returns that will help maintain the purchasing power of their capital,” the analysts added.
“Such investments can be crowdfunding or P2P lending, as well as cryptocurrency projects.”
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