European investors take higher risks in search of yield
European investors are opting for higher-risk portfolios as their assets grow, new research has found.
Analysis from peer-to-peer lending platform Robo.cash found that the risk profile of Europeans has begun to change from conservative to aggressive, as they expand the share of their funds in the stock market and alternative investments.
Household assets in the continent have grown by 51 per cent over the past decade, Robo.cash said, growing to €34.08trn (£29.3trn) by the end of the first half of 2023.
Read more: Continental European P2P market forecast to grow by 20pc next year
This is approximately €93,000 per adult, on average, compared to €62,000 previously.
“There have been some interesting changes in the structural view of the portfolio,” Robo.cash said. “Over the last 10 years, cash has smoothly moved from less risky instruments (debt securities, deposits, IPSG) to the most risky ones (equities, FDESO, other assets).
“The share of the former in the portfolio has decreased by 7.8 per cent since 2013. While the categories of the “risky group” show steady growth.”
Read more: EU platforms welcome new crowdfunding rules
Over 10 years, equities have risen from a 26.9 per cent average stake in investors’ portfolios to 33.4 per cent, Robo.cash said, while other assets have grown from 2.9 per cent to 3.4 per cent.
“This reflects the long-term sentiment of individuals for higher yields,” said Robo.cash analysts.
Denmark, Sweden, the Netherlands and Belgium have households with the highest share of riskier assets.
“These states are, for the most part, the richest in Europe in terms of GDP per capita,” Robo.cash analysts added. “They also share high life expectancy and access to all global financial instruments and types of investments due to their developed economies.”
Read more: Consumer confidence fuels appetite for P2P investing