Investing in S&P/ASX 200 Index (ASX: XJO) shares offer many investors a pathway to a wealthier retirement.
Or perhaps the means to take that cross-country trip.
Whatever your end goal, the ASX 200 has historically delivered returns you won't get from a bank term deposit.
Over the past four years, the benchmark index has gained 7%.
But that doesn't give you the full picture, as many ASX 200 shares pay dividends.
A better metric is the S&P/ASX 200 Gross Total Return Index (ASX: XJT), which includes all cash dividends reinvested on the ex-dividend date. The total return index is up a healthy 24% in four years.
This fact hasn't been lost on Aussie investors awaiting their tax returns.
ASX 200 shares and tax refunds
According to a May survey completed by 1,410 customers of online investment platform Sharesies, fully 46% intend to invest their tax returns. And 48% of respondents said that investing is one of the top three priorities to spend their money on over the next three months.
Commenting on the survey results, Australia country manager, Brendan Doggett told The Motley Fool, "Despite economic difficulties, Sharesies investors are staying headstrong when it comes to their money management."
He said they're "sticking with their investment strategy during moments of market highs and lows".
Doggett added:
There's no sign of wavering on these long-term goals either, as 72% admit they plan to invest for 10 years or more and 47% say they are looking to invest up to $3,000 over the next year.
The survey data doesn't indicate whether these investors are specifically targeting ASX 200 shares with that $3,000.
However, Doggett told us, "To reach their goals, our customers are nurturing diverse portfolios with a mix of investments going into companies (75%), ETF's (70%) and index funds (24%)."
And cost of living pressures haven't kept investors from seeking out opportunities.
According to Doggett:
While many of our investors are certainly considering the cost of living when deciding how much to invest, we have actually seen an 11% increase of FUM [funds under management] on the platform this quarter, while 84% of our investors say they aren't worried about their investments over the next six months.
Many investors also are sticking to their guns on environmental, social, and corporate governance (ESG) issues.
"Not only is it great to see our customers remaining confident in their strategies, we are also seeing increasing interest in ESG on platform," Doggett said.
In fact, 70% of respondents said they believe it's important to invest in companies that are socially responsible.
And this is an area of investing, both within and outside of ASX 200 shares, that Doggett believes is only going to grow.
"This is something we expect to continue growing as we all become increasingly conscious of our impact on the environment," he said.
