The financial regulator of France, Autorité des Marchés Financiers, recently published a study conducted by the Organisation for Economic Co-operation and Development (OECD) regarding investment choices and growth levels in the country. The survey, released on November 13, revealed the popularity of digital assets among the French population. According to the study, 9.4% of adults in France own cryptocurrencies, while 2.8% own non-fungible tokens (NFTs).
Investment Preferences in France
The survey indicated that 24% of adults in France are financial investors, with over 12% being new investors who entered the market after 2020. Real estate emerged as the most desired investment product, with 10.7% of the population owning such assets. Digital assets, including cryptocurrencies and NFTs, ranked second in popularity. Listed individual shares, unlisted shares, bonds, and investment funds followed suit with 7.3%, 5.6%, 5.4%, and 4.5% ownership, respectively.
“New investors showed higher demand for digital assets although they were more prone to investment mistakes than traditional investors.”
The survey also revealed that new investors demonstrated a higher demand for digital assets compared to traditional investors. However, they were more prone to making investment mistakes. The study showed that 64% of new investors were men, while 36% were women. In contrast, traditional trading products were owned by 65% of new investors and 85% of older investors.
The Rise of Digital Assets
While digital assets, particularly cryptocurrencies, were considered risky in previous years, the survey highlighted a shift in perception. Traditional firms and wholesale clients are now investing in the asset class, and Europe is at the forefront of this new investor appetite. The survey aimed to assess the levels of financial literacy among the French population, particularly new retail investors who have entered the market in recent years.
As part of their objectives, a second document will be released in 2024 in partnership with the Banque de France. This document will focus on “financial education strategies” to support new retail investors. The French financial authorities recognize the importance of regulating the digital asset sector to protect all stakeholders, promote transparency, and facilitate cross-border payments.
“Participants listed several reasons for investing in financial products ranging from diversification to higher income and sustainability.”
The survey participants cited various reasons for investing in financial products. Some sought diversification of their portfolios, while others aimed for higher income and long-term sustainability. Approximately 35% of participants were motivated to invest due to the opportunity to diversify their asset classes. Meanwhile, 28% invested in pursuit of profits, and an additional 28% relied on recommendations from trusted sources.
Participants gathered information about investments from product documents, acquaintances, media outlets, and financial institutions. Notably, young investors expressed caution in light of financial uncertainties, which may be attributed to their cautious approach across all markets.
