How Investment Strategies Differ Between 70s and 20s Retail Investors
Shinhan Investment Corp. Releases Q1 Statistics
Over Half of Profits Concentrated in Top 3 Stocks
It has been revealed that investors aged 70 and older are making aggressive investments in the rising stock market, leveraging their significant financial resources. In contrast, investors in their 20s have shown a trend of diversifying their investments across various stocks and exchange-traded funds (ETFs).
According to Shinhan Investment Corp. on May 19, during the first quarter of this year, customers aged 70 and older made an average of 65.4 purchases per person, which is about 4.1 times higher than the 15.8 purchases made by those in their 20s. The average number of sales per person was also higher for those aged 70 and older, at 45.7 times, approximately 3.7 times more than the 12.2 times recorded by investors in their 20s.
In the first quarter, the average profit per investor was 18,733,057 won for those aged 70 and older, and 1,425,460 won for those in their 20s. The average trading turnover per person in the first quarter was 13,625.5% for those aged 70 and older, which was lower than the 27,672.8% recorded by investors in their 20s.
Trading turnover refers to how actively an investor buys and sells compared to the capital held over a certain period. It is calculated by dividing the average transaction amount for the period (average purchase amount plus average sales amount) by two, and then dividing that number by the average daily balance.
The relatively lower trading turnover among investors aged 70 and older indicates that the amount traded was small compared to their account balances. While older retail investors made frequent purchases and sales, they tended to trade only a portion of their total investment funds at a time rather than making large transactions in one go.
The main profit-generating stocks for both age groups were similar. During the first quarter, the stocks that generated the most profits for both those aged 70 and older and those in their 20s were Samsung Electronics and SK hynix.
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However, for investors aged 70 and older, the top three profit-generating stocks (Samsung Electronics, SK hynix, and Doosan Enerbility) accounted for 57.1% of their total profits, whereas for investors in their 20s, the top three profit-generating stocks (Samsung Electronics, SK hynix, and Hyundai Motor Company) made up only 32.0%. Investors in their 20s also had a higher proportion of investments in ETFs such as TIGER US S&P500 and KODEX200.
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