How much the average Australian investor earned in 2021

Ever wondered how large the portfolios of your friends and neighbours are? And how much they raked in last year? Here are the answers.

| More on:
A young woman checks her investments on her tablet.

Image source: Getty Images

Australian investors made “a small fortune” over the course of 2021, a new survey has found.

Research conducted by comparison site Finder showed 75% of Australian stock investors boasted a positive return in the past year.

The average growth of their portfolios was a pleasing 20.4%.

To compare, the S&P/ASX 200 Index (ASX: XJO) put on 13% for the 2021 calendar year.

The Finder study showed the average Australian portfolio of $31,613 would have earned a tidy $5,356 last year.

Near-zero interest rates make ASX shares very attractive

According to Finder share trading expert Kylie Purcell, ASX shares were “a smart way” to invest with interest rates at historic near-zero levels.

“Australians have been quick to adapt by putting some of their money into shares, which can deliver higher returns,” she said.

“The 2020 market crash was a game changer for Australians, with thousands of people a day signing up to online brokers for the first time.”

Indeed, the research showed 37% of Australians now own a stock portfolio, with millennials (46%) and generation Z (42%) leading the participation.

According to Purcell, a huge lump sum isn’t a prerequisite for Australians to get started with ASX shares.

“You don’t need to be rich to get involved – there are also micro-investing apps that let you invest your spare change.”

Traps to watch for in 2022

In a country traditionally obsessed with real estate, many Australians used to have a perception that buying ASX shares is complicated.

But new online tools have recently opened up a new world for many everyday people.

Purcell did warn of hidden charges though.

“Online platforms and apps like eToro and Superhero have made it super easy for everyone to jump in. They’re intuitive to use – but watch out for brokerage and subscription fees,” she said.

“Some platforms also charge an inactivity fee if you’re not regularly trading, so it’s worth comparing your options before getting started.”

She added that while many Australians with ASX shares beat the market over the past 12 months, they need to continue exercising caution.

“It’s a good idea to ensure your investment is diversified. Instead of betting all your chips on one or two companies, spread it out to reduce your risk.”

Wondering where you should invest $1,000 right now?

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for over ten years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes could be the five best ASX stocks for investors to buy right now. These stocks are trading at near dirt-cheap prices and Scott thinks they could be great buys right now.

*Returns as of January 12th 2022

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

More on Investing Strategies

A male investor wearing a white shirt and blue suit jacket sits at his desk looking at his laptop with his hands to his chin monitoring the CBA share price today
Investing Strategies

This year will be bad. But ASX shares still the best place to be: economist

2022 is set to be a hard slog for investors. But you don't want to be anywhere else but Australian…

Read more »

Concept image of Bitcoin and hand using laptop.

Using Bitcoin to diversify your portfolio? Read this

Cryptos have been rising and falling largely in line with other risk assets.

Read more »

ASX share fund manager Robert Gregory
Investing Strategies

My fund just went up 51%: This is how I did it

Ask A Fund Manager: Glenmore Asset Management's Robert Gregory explains the philosophy behind his portfolio's industry-leading performance.

Read more »

red percentage sign with man looking up which represents high interest rates
Investing Strategies

Warning: 3 ASX shares under pressure from rising interest rates

There is much bargain-hunting to be done right now, but there are still some stocks that you better off waiting…

Read more »

A female athlete in green spandex leaps from one cliff edge to another representing 3 ASX shares that are destined to rise and be great
Broker Notes

3 ASX shares destined for greatness: Firetrail

Stocks themselves have no memory, so even ones that have dropped violently this year can shoot back up if the…

Read more »

A man and a woman sit in front of a laptop looking fascinated and captivated by ASX shares news articles especially one about the Bannerman Energy share price
Broker Notes

2 ASX shares that could surprise you in a year’s time

Here are a couple of stocks that have different spins on the word 'quality', both of which could serve you…

Read more »

A person holds their hands over three piggy banks, protecting and shielding their money and investments.
Investing Strategies

How is the AFIC share price performing with the ASX 200 volatility?

Is the AFIC share price seeing the same volatility as the ASX 200?

Read more »

woman meditating and keeping calm
Investing Strategies

How to deal with the current share market calamity

This poem from 112 years ago tells you how to deal with massive stock market corrections, like we're seeing at…

Read more »