AI overtakes superfunds for investor education

Artificial intelligence (AI) has overtaken superannuation funds as a source of investment information among younger, highly knowledgeable Australian investors, according to new research from Global X.

The inaugural GXIQ Investor Scorecard 2026, base on more than 2000 current and prospective investors, found Australians recorded an average GXIQ scorecard of 63 out of 100.

Only 15% of investors achieved an 'Advanced' rating, while more than half were classified as 'Beginner' or 'Intermediate' investors.

The research found less knowledgeable investors were more likely to favour familiar assets such as residential investment property, while investors with higher GXIQ scores were significantly more likely to hold diversified portfolios and look beyond property and Australian shares.

Global X ETF's Australian chief executive Alex Zaika said the findings highlighted the challenges Australians face as they take greater responsibility for building long-term wealth.

"While a national score of 63 out of 100 isn't disastrous, it's nowhere near where we need to be as a country," Zaika said.

"We know that Australians want to take control of their financial future. We can see that in the growth of SMSFs. Many people are choosing to manage their own super, or be involved in how their portfolio is shaped, which we completely support. However, too many of us are still relying on assumptions, old ideas, and familiar assets to make major financial decisions."

The research also found uncertainty around proposed capital gains tax and negative gearing changes could be affecting prospective investors, with 29% saying they did not understand the government changes.

A quarter of prospective investors said they were less likely to invest following the changes, while 12% said they were more likely to invest and around one-third said the changes would not affect them.

Zaika said investors were increasingly turning to sources beyond traditional financial institutions, including social media, YouTube, Reddit, podcasts, and ChatGPT.

"Financial institutions like to think they are influential in this space, but the results show otherwise," Zaika said.

"People are gathering information from everywhere. They are using social media, YouTube, Reddit, podcasts, and ChatGPT. The industry needs to acknowledge that reality and respond to it."

The GXIQ Investor Knowledge Test measures understanding of diversification, compound interest, investment risk, tax, and investing fundamentals, with participants receiving a score from zero to 100.