New York, NY, USA
March 20, 2008
The German
Retail Investment Market
Report Published by Celent
By international comparison, the popular equity
culture in Germany is still in its infancy. But individual investors’
confidence in the capital markets is increasing.
In a new report, The German Retail Investment
Market, Celent provides a comprehensive overview of the retail
investment market in Germany, examining past growth and forecast growth,
the level of market opportunity, and recent competitive dynamics.
Fundamental changes in private investment are
currently observable for the German retail investment market. Whereas
individual investors’ financial asset selection behavior was
traditionally accounted for by a large proportion of cash and deposits,
investors increasingly assume riskier and more sophisticated portfolios.
The mutual fund market is undergoing significant growth, partly spurred by
cutbacks in the state-run pension system. Alongside this investment trend,
the markets for exchange-traded funds (ETFs) and certificates have
developed exponentially.
Source: Deutsche Bundesbank, Celent
In the online brokerage arena, competition for the
provision of integrated services is one of the major trends. Major players
tend to supplement the classical brokerage business with advisory services
and additional services from the banking, insurance, and mortgage lines.
Some brokerages have also established a limited physical presence.
"The German retail brokerage market is highly
concentrated. Niches for new market entrants remain, but the competition
to seize them will be aggressive," notes co-author and Securities
& Investments analyst Isabel
Schauerte.
"The market is ready to take on more risks.
Private investors have taken to buying certificates and ETFs with a
ferocity that undermines the belief that Germans have no stomach for
financial innovation," she adds.
The 30-page report contains 22 figures and six
tables.
A table of contents is available
online.
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