What motivates Czechs to invest?

More than a third of people have invested once or do so regularly. The clear motivator for the Czechs is the need to provide for their old age; they do not believe that the state will take care of them. They consider the acquisition of real estate to be their best investment.

The Czech Republic is still dominated by people who have never invested and have no plans to do so. Only four out of a hundred people consider themselves experienced investors, and about one in three Czechs invest regularly or on a one-off basis. This is according to a survey conducted by Perfect Crowd for the Capital Market Association (AKAT).

“If we look at foreign statistics, we still have much catching up to do. However, 23 percent of respondents consider investing, which already sounds more hopeful. They are probably also led to do so by the current enormously high inflation, which makes them think about how not to let their savings depreciate in their current account,” added Jana Brodani, executive director of AKAT ČR

Czechs often consider real estate their best investment (29 percent), but more than two-fifths of the respondents failed to identify the worst, with one-tenth agreeing on a used car.

In old age, money will be needed

.For almost two-fifths of people, the primary motivator for investing is creating a sufficient financial reserve for old age, as they do not believe the state will take care of it. In addition, less than a third want to ensure an active lifestyle even in old age.

Another critical motivator is, for example, that the money should not just sit in the account (34 percent) or be protected from inflation (27 percent) but also be used to prepare for unexpected situations (25 percent), secure the future of children, or save for a more leisurely start in life (26 percent).

On the other hand, the most significant barrier to investing for two-fifths of respondents is the fear of losing their money. A third also fears a “profitable” investment will become a scam. However, ignorance, a lack of information, and the necessary finances are also barriers to investing.

Financial portals are the most frequent source of information on investing for a third of people, and for about one in seven to one in eight Czechs, they are also an essential source of information. A quarter of people get advice from friends, and roughly the same number read the websites of investment companies.

For half of the population, the return on an investment already made is the main factor in choosing an investment. Less than half also look at who is offering the investment, and the potential excess return also guides two-fifths due to inflation.

Investing precedes saving

Czechs most often have savings and current accounts (65 percent of their finances). The vast majority of Czechs’ savings are thus very liquid. People want to have money available in case of sudden events that could affect their economic situation, even in the short term.

Two-fifths of the respondents save in pension savings accounts and less than a third in building savings. One in six invests in mutual funds, one in eight invests in cryptocurrencies and life insurance, and roughly the same number have investments in gold.

Despite the unfavorable times, over two-fifths of Czechs plan to save at least in a savings account in 2023. A quarter of the adult population wants to put money into pension savings, and less than a fifth wants to build savings.

However, all of these products, along with investment life insurance and cryptocurrencies, are mentioned less frequently compared to the products people own now. Gold and other precious metals were the only ones to see a slight increase in this respect.