Millennials are more concerned with long-term returns and fee transparency than with picking ethical investment funds for their portfolios, Calastone research shows.
Young investors between 23 and 35 in the UK, France, Germany, Australia, Hong Kong and the USA say returns on capital, low fees and transparency are the most important considerations.
A total 53 per cent placed long-term returns as their primary criteria, with transparency of investment strategies second at 50 per cent.
Investing in environmental, social and governance causes was found to be the lowest consideration for the age group when it came to choosing funds.
Just under a quarter (23 per cent) of millennials said ESG was important.
The research says: “Like older generations, younger ones favour the basic pre-requisites of investing before considering ethics.”
The research also found younger generations value face-to-face communications and advice in a similar way to their older counterparts.
The research says: “Whilst millennials are tech savvy, when managing investments, 42 per cent of all millennials chose speaking directly with people as their preferred method.”
The study also highlighted an educational gap amongst young people, finding 47 per cent of millennials reference a limited understanding of investing or investments.
It says: “The results of the study present a clear disparity amongst the newest generation of investors. There is a willingness and appetite to invest their capital, though insufficient understanding of, and access to, investment services could be inhibiting the ability of young investors to do so.”