Unpacking Investor Trends: What’s Driving Retail Investor Engagement in 2025?

More than 7.7 million Australians hold investments on the ASX, highlighting a uniquely high level of retail investor participation. But as the demographics of the market shift and new mediums for communication emerge, how we connect with these investors needs to evolve too.

Who is the Average Aussie Investor?

According to data from ASX and Vanguard, the average Australian investor is 47 years old, with a notable gender skew: 58% are male and 42% female.

What Are They Investing In?

Investment preferences vary significantly by age. Older investors – particularly baby boomers – show a strong home-country bias, with up to 87% of their portfolios invested in Australian assets. This is often linked to a preference for income-generating shares and franking credits.

Younger investors, on the other hand, are increasingly turning their attention offshore. Vanguard research shows that under-25s, who once invested $3 in Australian shares for every $1 in international shares, have now shifted to a 1:1 ratio. The same trend is seen in the 25–49 age bracket, signalling a growing appetite for diversification and global growth opportunities.

Younger investors are also driving demand for ESG-aligned investments. With 31% of investors making decisions based on ESG, and growing interest from millennials and Gen Z, messaging needs to go beyond financials to include purpose, ethics, and sustainability. Europe is leading the charge in ESG education- it’s worth looking across the pond for inspiration on how to weave ESG into investor narratives in a compelling way.

Where Do Investors Turn for Guidance?

According to an ASX Australian Investor Study, family and friends remain the most trusted sources of investment information—particularly for first-time and female investors. This reliance on personal networks highlights the enduring role of trust in financial decision-making.

Notably, female investors are significantly more likely to depend on personal, relationship-based sources than formal financial advice or online channels. And with 64% of non-investors in Australia identifying as women (ASX), the gap between potential and participation is striking. The opportunity lies not just in better information—but in better communication.

How Can We Encourage New Retail Investors to Invest in Aussie Shares?

While Australia has one of the highest rates of share ownership globally, younger and first-time investors are increasingly looking offshore. This shift reflects a desire for diversification, exposure to global megatrends, and in some cases, disillusionment with perceived limitations of the local market.

So how do we re-engage retail investors with Australian equities—especially the next generation?

Here’s what behavioural finance and digital marketing research suggests:

1. Prioritise Financial Education Over Promotion

Data from ASIC and the ASX indicates that confidence is one of the biggest barriers to first-time investing. Rather than leading with a product pitch, lead with value: demystify dividends, explain risk in plain language, and show what investing feels like.

2. Reframe the Narrative Around Aussie Shares

Younger investors often perceive Australian equities as “boring” or limited to banks and miners. But this overlooks the innovation happening in local tech, renewables, critical minerals, and healthcare. Investor communications need to highlight emerging sectors, early-stage opportunities, and Australia’s role in global supply chains.

Tip: Use storytelling to make these opportunities relatable. Don’t just list projects – explain why they matter, how they align with global trends, and how investors can be part of the journey.

3. Use Short Form Video

For retail investors—particularly Gen Z and millennials—attention spans are short and expectations high. Videos under 90 seconds consistently outperform longer formats in retention and engagement.

For listed companies, this means ditching the dense PDFs and honing in on one clear message per video. Break your equity story into bite-sized topics:

“Why we’re expanding into the US market”
“What’s driving our revenue growth this quarter”
“What sets our project apart from peers”

A well-crafted short-form video builds familiarity, reinforces credibility, and gives investors a reason to keep watching—and keep investing.

Also consider where these investors are spending time: Hootsuite’s 2024 Digital Report shows Instagram, TikTok, and YouTube remain dominant platforms for users aged 18–35. Brands that show up natively (i.e., in the platform’s tone and format) earn far more trust.

4. Meet Investors Where They Already Are (On Platforms They Use)

According to Hootsuite’s 2024 Digital Report, younger investors (aged 18–35) are spending the bulk of their screen time on Instagram, TikTok, YouTube, and increasingly LinkedIn. These platforms aren’t just for entertainment – they’re where financial education and discovery are happening in real time.

For listed companies, showing up natively – in the tone, format and pace that aligns with each platform—builds far more trust than repurposed corporate content. That means:

Reels and Shorts with clear, punchy messaging
Subtitled CEO snippets
“Explainer” TikToks demystifying your investment case
Behind-the-scenes LinkedIn posts humanising leadership

The goal is to educate, not overwhelm – and to be present where investment curiosity begins.

5. Leverage Design Psychology to Build Trust

You may not think design is important to digital investor marketing, however good design can increase time on page, benefit click-through and reshare rates, and most importantly, design can positively shape perceptions of the company being researched for investment. Interestingly, research from ScienceDaily (2021) found that colour schemes influence investor sentiment: red can exacerbate market pessimism, while blue and green hues promote calm and trust.

Reaching Retail Investors in 2025: A Multi-Layered Approach

There’s no single way to reach today’s investor. What we’re seeing is a need for segmentation and strategy:

Family and friends remain powerful referrers, so think about how your message can be easily shared in social settings or group chats.
Brokers play a key role, especially through research, webinars, and CEO connection events. Collaborating with brokers to develop accessible content can boost trust and credibility.
High-value investors, often willing to pay for premium research or attend in-person events, need a different approach—more detailed reports, tailored comms, and regular touch points.
Treat investor engagement like a full-funnel marketing strategy—segment by value, stage, channel, and content type (more in this in a future blog!).

Final Thoughts

Investor engagement is about being where your audience is, speaking their language, and understanding what matters to them. For us at Investability, that means creating content strategies that build trust, inform clearly, and reach people across the platforms they already use.

Whether you’re a listed company or a private business looking to scale, understanding investor behaviour is step one – and shaping your message with intention is where the real impact begins.

Want help reaching retail investors? Get in touch.

Unpacking Investor Trends: What’s Driving Retail Investor Engagement in 2025?