Millions of Americans are making their first investment in their first auto investment account, Genesis Automatic Investments, according to new research from investment firm First Capital.
The research also finds that many of those accounts are now earning more than $1 million per year.
The firm’s analysis found that 1.8 million auto investment accounts have earned more than 10% annually, while 1.5 million accounts have garnered more than 8%.
The most popular accounts have all been trading at a premium over their peers.
The most common assets are stocks, bonds, and money market funds, while the most popular categories include real estate, autos, and commercial real estate.
The Genesis accounts that are gaining the most traction, with the most growth, are also the ones where investors are taking advantage of tax-free investment deferral, a popular option for investors looking to defer taxes.
The biggest gains are coming from funds managed by Fidelity Automotive, which generated more than 20% of the top 10 auto investments last year.
Other high-growth auto investment companies include Genesis Investment Management, a portfolio management company based in Florida; Genesis Automotive Investments, based in New Jersey; and Genesis Investment Company, based out of Ohio.
Investors are increasingly turning to Genesis Auto Investments because it has a tax-deferred model, meaning they can defer taxes and fees until they pay them.
The auto investment funds have a high ratio of investments to investments, and they have a large number of employees.
Investments like these are a big draw for investors because they are often the most undervalued assets, meaning the returns are typically much higher than stocks or bonds, according of First Capital CEO Jim Zirkel.
The company has found that some auto investments have gained more than 50% in value over the past three years, and the average value of these funds has increased more than 75% from the same period in 2015.