Young Australians investing in record-breaking numbers

Young Australians are entering the stock market in record-breaking numbers, new CommSec data shows.

CommSec, the country's biggest trading platform, reported a 37 per cent spike in new accounts last financial year, with 2.9 million investors under the age of 40 making up nearly half of the investors on the platform.

Experts say younger Aussies are entering the stock market more than ever because they don't have enough savings to buy a home, but they are still looking for a return on investment.

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"Most of our parents and grandparents saw investing in equities as risk ... and a risk they weren't willing to take," Behavioural analyst Evan Lucas said.

"Whereas the younger generation see it the other way around... They see it as the correct risk, in fact, they see it as less risky than things like property."

CommSec General Manager James Fowle said younger investors were becoming significantly more active on the platform.

"What we've seen is a change in the ease of getting into investing in the stock market," Fowle said.

"You can invest with a much smaller investment upfront, and the access to information for those investors is there as well, it's become much easier to find out what to do, how to invest."

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The things young Australians are choosing to invest in are also vastly different to what older investors are picking.

For investors over 40, the top five most traded investments are direct share investments, mostly in mining and resources companies.

For investors under 40, the top five are all ETFs, which are bundles of shares traded together, which experts say are relatively safe investments.

"So if there is some volatility or one company doesn't do as well, you're protected by being in that bundle... That's giving you diversification and helping to manage your investment risk."

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While the stock market is never predictable, the top investment for over 40s has grown by 35 per cent in the last five years.

In that same time, the top investment for under 40s has risen by 130 per cent.

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