21% of Luxembourg Residents More Interested in Financial Investment due to COVID-19 Crisis

According to the results of a survey carried out by ING on the behaviour of consumers during the crisis, 21% of Luxembourg residents are now more interested in investment funds.

An in-depth analysis of the results of this study has shown that interest in financial investment is greater among 18 to 34-year-olds in Luxembourg. This increased interest among the resident population has been attributed to the COVID-19 crisis.

While residents with Luxembourg nationality accounted for only 13% of those saying their interest in investing has grown in the current context, 30% of foreigners stated that they intended to explore the alternative to savings.

Sébastien Mercier, manager of the investment activity at ING Luxembourg, explained: “At the start of the crisis, we noticed a significant increase in investment activity by private investors, including both existing and new investors”. He added: "It's clear that investors are increasingly aware that you shouldn’t panic when the markets go down, but that you need to stay focused on a long-term objective. Others take advantage of the situation to invest when prices are down, betting on a correction when markets rise. It’s essential, as always in investing, to think long term".

Sébastien Mercier expressed his belief that both savings and investment will become even more important in the context of the COVID-19 crisis. A more in-depth study of the change in deposits and savings deposits with ING customers has provided the corresponding conclusions. Not only is demand for investment funds very strong, savings accounts are also growing, according to Mr Mercier.

The challenge now is to help non-investors combine savings and investment to better manage their financial assets. “There are two important considerations: 1. What portion of my money should remain available on a savings account, in reserve, and for my short-term needs and 2. What amount can I invest differently for longer-term needs”, explained the investment expert. Solutions already exist for small investors. “Everyone has to be able to invest in securities”, Mr Mercier affirmed.

Indeed, alternatives that make investing accessible to a large portion of the population already exist, with beginners and small investors able to start with €50 a month.

The survey was carried out in Luxembourg from 27 April to 4 May 2020 by TNS ILRES for ING Luxembourg. The survey included 500 people aged 18 and over.

The first part of the survey results can be viewed at https://www.ing.lu/webing/content/siteing/en/About_us/press/2020/ing-news---coronacrisis--luxembourg-is-confident.html; the second part is available at https://www.ing.lu/webing/content/siteing/en/About_us/press/2020/ing-news-corona-virus-luxembourg-residents-support-local-economy.html.