At Itrust Invest we love data.
Quality data helps us understand the needs of our customers so we can continually improve our service offering and streamline the user experience.
Recently we spent some time unpacking our onboarding data and customer behaviour to gain a better grasp of the characteristics and motivation of “Guardians” and “Gifters”.
Guardians are adults who typically invest on behalf of young family members (“Beneficiaries”). Gifters are people who send financial Gifts to Guardians on behalf of their Beneficiaries.
Although Guardians and Gifters are both driven by the desire to improve the financial future of their Beneficiaries, each group can have separate, distinct characteristics.
On the one hand, Guardians typically have a detailed understanding of financial concepts and are currently investing for themselves. They read the financial press and will take their time researching investment options before making a decision. They are also committed to completing the Itrust Invest on-boarding process in one step.
Gifters, on the other hand, may not be familiar with investing to the same degree as Guardians. They tend to use the Itrust Invest Gifting facility to make one-off Gifts for birthdays and other significant milestones in the life of the Beneficiary. People who send Gifts expect a very smooth user experience.
A sustainable investment in your child’s future
Increasingly, family and friends do not want to send unsustainable gifts. They care about the child’s financial security, and they want to do the right thing by the environment.
For grandparents, aunts and uncles who traditionally put cash in a card, a financial gift gives them the opportunity to make a direct, sustainable investment in the child’s future.
The old saying goes ‘it takes a village to raise a child’. The advantage of the gifting facility is that family and friends can send financial gifts to increase the child’s long-term nest egg. The community around the child is getting together to support a single aim, that is, the child’s long-term financial security.
How much should I invest?
According to Itrust Invest data, the greater the number of Contributions a Guardian makes, generally the lower the average value of each Contribution. This profile fits the Itrust Invest philosophy of investing small amounts regularly, or dollar cost averaging, to smooth out market volatility.
Volatility is a feature of the current market due to macroeconomic factors such as inflation, the Russian invasion of Ukraine and a lower growth outlook for China. Regular Contributions, whether weekly or monthly, help smooth out the peaks and troughs of market volatility.
Some key results from the recent analysis of the Itrust Invest onboarding data include:
- Guardians from Victoria are the most generous by average $ value per Beneficiary, followed by NSW, then South Australia
- Average age of a Guardian investing on behalf of young people (0-14 years) is 39.2 years
- Average age of a Beneficiary is 8.2 years
- 41% of Guardians make their first Contribution on the day they create their account; 65% by day 5; 83% within the first 30 days
- 87% of all Contributions by $ value are from one-off Contributions
- $527 is the average value of one-off Contributions
- The average $ value of a Gift is $87
- The average Weekly Contribution by $ value is $20
When it comes to investing the sooner you start, the more time compounding growth has to work it’s magic. Consider joining the Itrust Invest community today and start to make a real difference to the future of your loved ones.
If you’d like to know more then speak to the team via the live chat below, or give us a call on 1300 811 119 – we’d love to hear from you.
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Disclaimer: in preparing this blog we have not considered your personal investment objectives, financial situation or needs. Instead, this blog contains general advice and has been prepared for informational purposes only. It is not intended as financial product advice or a recommendation in relation to any investments or securities. Terms apply when using the platform provided by Itrust Investment Fund, and it is important you read the PDS and key documents before deciding if any of our offerings are right for you.