Generation Y professionals favour short-term investments with only 12% investing in products such as managed funds and ETFs.
This is a key finding of KPMG's Banking on the Future 2017 report which shows Gen Y prefers liquid investments that can easily be converted to back up funds, with 27% owning shares as they can be cashed to finance things such as travel.
Property investments make up just 15% of Gen Y professionals' investments, while 13% are invested in term deposits and 8% in managed funds.
The study, which surveyed 1400 KPMG Gen Y employees, also found that most don't believe wealth products are geared to their needs. Focus group studies found there is a perception that certain products are out of their range due to their long-term nature and perceived minimum investment requirements.
"Products relevant to their goals are not particularly well formed in most financial institutions and consequently, we're seeing new fintech players step in and fill that space," the report reads.
As a result, 75% of Gen Y professionals are using savings accounts as their primary investment tool.
"This is driven by their desire for liquidity to support their lifestyle and the perceived complexity of the current range of investment products available to them," the report states.
A further key finding is that Gen Y professionals aren't interested in financial education unless it's tailored to their realities and priorities, with respondents highlighting cash flow management as being important to them.
The report shows that 55% would value free financial planning if it had a focus on spending, down 10% on the prior corresponding period.
"The majority would prefer advice/coaching to be delivered via digital channels largely driven by convenience, not being 'pressured' by the face to face experience, and a perception of greater independence," the report said.
KPMG defines a Gen Y professional as being between the ages of 18 and 30, university educated, relatively well paid, tech savvy and more globally minded.