Technology, digital platforms, and fintech innovations are empowering individuals to take control of their financial future. A growing cultural shift towards financial independence is driving more Australians to seek greater autonomy over their investments, moving away from traditional institutions in favour of self-directed investing. Whether through self-managed super funds (SMSFs), direct share trading, or alternative investments like private equity and crowdfunding, investors are leveraging technology to access new opportunities and shape their financial futures on their own terms.
This shift is already reshaping investment behaviour, with more individuals gaining direct access to asset classes once dominated by institutions. Darren Connolly, Chief Marketing Officer of InvestmentMarkets, notes that technology is playing a key role in removing these barriers. “More than 20,000 investors search for investment opportunities on InvestmentMarkets every month,” he says. “They have quick access to a far greater range of public and private investment opportunities than ever before.”
The impact of this trend is clear in Australia’s private capital market, where individual investors are playing an increasingly important role. As of June 2023, assets under management reached A$139 billion - a 33% increase in just 18 months, according to the Australian Investment Council. It is worth noting that private equity and venture capital combined accounted for A$65.5 billion, reflecting a 30% rise since December 2021. This highlights how individual investors are increasingly participating in markets once dominated by institutions.
“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,” says Connolly. This shift is not just happening on investment platforms - it’s also evident in new models of investing, such as crowdfunding and fractional ownership, which are making high-value assets more accessible.
With more investment opportunities available, technology and data analytics are becoming essential tools for self-directed investors looking for advanced platforms that offer real-time market insights, performance tracking, and sophisticated risk assessment models, features that were once the domain of professionals in the largest of institutions.
“What’s exciting is how technology isn’t just opening doors, it’s helping investors make informed choices,” remarks Connolly. “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.”
From big data and machine learning, investors can use technology to identify trends and themes, and understand the implications for their portfolios. Social media and online communities further enhance understanding by providing forums for knowledge sharing and community engagement.
“These days, investors have more tools and data at their fingertips than ever before,” says Connolly. “But there is a downside,” he adds. “The sheer number of investment possibilities can feel overwhelming.”
To address this challenge, comparison platforms play a crucial role in simplifying the investment landscape. “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,” Connolly concludes.
Technological advancements are not only increasing access and transparency but also supporting financial literacy and engagement. Ultimately, they are enabling self-directed investors to manage their own portfolios with great confidence and control over their own wealth.
For more information, please visit https://www.investmentmarkets.com.au/