Ireland is experiencing a notable shift in how people manage their finances. Increasingly, individuals are moving beyond traditional savings accounts and property investments to explore stocks, ETFs, and other financial products via direct digital investment platforms. This growing enthusiasm is encouraging, as Ireland has historically trailed behind the UK and its European neighbours in cultivating a widespread investment culture. However, it also introduces risks that are often overlooked.

Growth in DIY Investment

Recent research from the Banking & Payments Federation Ireland (BPFI) reveals that one in three Irish adults now hold some form of investment, excluding pensions and property ownership. Among those under 35, an impressive 60 percent prefer using digital platforms over traditional channels for investing. According to Statista, the digital investment market in Ireland is expected to surpass €13.5 billion in transaction volume in 2025, with the vast majority of trades occurring through low-cost, app-based platforms.

These figures highlight a clear shift in investor behaviour, driven by improved technology and accessibility. People are taking greater control of their financial futures, marking a hopeful step forward for financial literacy and long-term wealth building which is a positive thing.

What Irish Investors Are Buying

While the appetite for investing is growing, portfolio data reveals a distinct pattern. Irish DIY investors tend to concentrate their holdings in a narrow set of securities, which may not provide them with sufficient diversification.

Reference: Trading activity data from major digital investment platforms, combined with analysis from the Central Bank of Ireland and industry research reports (Central Bank of Ireland Retail Investor Behaviour Report, 2023).

Risks of Overexposure and Lack of Diversification

This lack of diversification poses significant risks. Being overexposed to individual stocks or hot, trendy assets can be particularly dangerous. These investments tend to be more volatile and can experience sharp price swings driven by hype, speculation, or short-term market events rather than fundamental value. When a heavily concentrated portfolio is hit by a downturn in one sector or a collapse of a popular stock, the financial impact can be severe.

Many Irish investors are unknowingly overexposed to a narrow slice of the global economy, leaving their portfolios vulnerable when markets shift. The Central Bank of Ireland has expressed concern about increasing speculative behaviour, especially among younger investors. This behaviour is often driven by following trends or social media hype rather than a disciplined strategy.

Moreover, a BPFI survey found that 16 percent of Irish investors do not fully understand the fees, tax implications, or risk exposures related to their investments. This underscores a troubling gap in financial literacy, even among those who are actively investing.

The Case for Balanced, Professionally Managed Discretionary Portfolios

While the rise in retail investing is a welcome sign of financial empowerment, long-term success requires more than just access to trading platforms. Investing is not about chasing the latest trend or guessing the next big winner. It is about constructing a resilient, diversified portfolio capable of weathering different market conditions.

This is where professional wealth management firms, such as Cantor Fitzgerald Ireland, provide a valuable service. Through diversified multi-asset portfolios such as our Optimum Discretionary Model Portfolios, our experienced investment teams help reduce risk while helping you pursue your financial goals. These portfolios typically blend equities, bonds, gold, alternative assets, and cash, carefully tailored to align with each investor’s risk tolerance and financial objectives.

Professional managers also provide ongoing oversight, ensuring portfolios stay aligned with evolving markets, personal circumstances, and long-term objectives. They help optimise tax efficiency, a crucial but often overlooked factor by DIY investors.

Professionally Managed Discretionary Portfolio V DIY Portfolio

Why It Matters

The rise of direct investing in Ireland reflects an important cultural and financial shift. A new generation of financially aware individuals is actively engaging in wealth creation. However, the risks associated with poor diversification, emotional decision-making, and inadequate research cannot be ignored.

For investors unsure if their portfolios are balanced or those wanting to move beyond impulsive trend-chasing towards a disciplined investment approach, now is a good time to seek professional guidance.

Cantor Fitzgerald Ireland offers a range of managed portfolio solutions designed to deliver sustainable long-term growth while managing risk. Partnering with experienced advisors helps investors build wealth with confidence, discipline, and peace of mind.

Written by Leonardo Mazza, Head of Cross Asset Strategy & Fund Manager. Cantor Fitzgerald Ireland

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