The rise of the ‘independent investor’ backed by technology

New analysis has determined Australia’s wealth landscape is not only reaping the rewards of technological and platform advancement but also the ‘cultural shift’ towards financial independence, as more individual investors turn to opportunities that allow them to build their wealth autonomously.

According to InvestmentMarkets, the advancements made in platforms, self-managed superannuation funds (SMSFs) and investments like exchange traded funds (ETFs) has seen more investors gain access to asset classes previously only available to or dominated by institutional investors, including direct share trading, or alternative investments like private equity and crowdfunding.

Darren Connolly, Chief Marketing Officer of InvestmentMarkets, said technology has helped to democratise investing and allow individuals to take more control of their financial goals and futures.

“More than 20,000 investors search for investment opportunities on InvestmentMarkets every month,” he said. “They have quick access to a far greater range of public and private investment opportunities than ever before.”

“This ease of access is fuelling the rapid growth of interest InvestmentMarkets is seeing across the platform and also in areas like private credit, mortgage funds, and private equity.”

According to the Australian Investment Council’s Australian Private Capital Yearbook for 2024, private capital assets under management (AUM) reached AUD$139 billion as of June 2023, increasing by 33 per cent in 18 months.

Connolly said self-directed investors are increasingly turning to platforms and other resources powered by technology to increase their financial literacy and awareness as more new investment opportunities become available to them.

“What’s exciting is how technology isn’t just opening doors, it’s helping investors make informed choices,” Connolly said.

“Access to advanced tools and real-time insights means people can build their own strategies in ways we’ve never seen before, leading to a more engaged investing community.

“These days, investors have more tools and data at their fingertips than ever before. But there is a downside. The sheer number of investment possibilities can feel overwhelming. Platforms like ours present a modern shop window to help independent investors navigate the product landscape and find opportunities that may be right for them.”