Judging by old patterns, the London Stock Exchange's AIM has likely slumped in the run-up to the UK's general election.

Fundraisings on London's Alternative Investment Market are likely to have suffered in the face of a stubbornly hazy election climate.

In the UK's last election year in 2010, which gave rise to the country's first hung parliament since 1974, an average of £84.3 million ($128 million) was raised per month on AIM, according to national accountancy group UHY Hacker Young. This fell a sharp 53 per cent to £39.8 million in April and May that year.

“The potential for volatility around election periods doesn’t help pricing, and these figures suggest that many issuers and their advisors simply avoid the months leading up to the election. That level of disruption is worrying,” said Laurence Sacker, partner at UHY Hacker Young.

The widely-watched election barometer of opinion polls has seen erratic swings between Labour and the Conservatives since the campaign began. It is unsurprising therefore that wealth managers expect pre-election uncertainties to stick around well beyond polling day tomorrow.

“The only (near) certainty is a hung parliament, meaning uncertainty and fancy footwork for all involved in the immediate aftermath of the election,” said the chief economist at RBC Global Asset Management, Eric Lascelles.

“The policy gap between the two main parties is arguably greater than at any time for 20 years; the role of second tier parties is also much greater. The result of this election could therefore have major implications for UK financial markets,” said the chief economist at F&C Investments, Steven Bell.

With so many challenging tasks on the economic agenda, Psigma Investment Management's Tom Becket called this year's election “one to lose”.

“From a financial market perspective, the Conservatives are a known quantity and offer a generally preferable business platform. On the other hand, they have also committed to the great gamble of a referendum on European Union membership, and their fiscal austerity plans may hurt in the short run (even if they stabilize in the medium run),” said Lascelles. 

"Meanwhile, Labour is keen to slow the pace of austerity, but is less of a known quantity and may introduce unpopular tax hikes. Alas, there is something for investors to dislike with every outcome.”

So as a coalition government shapes up to be a probability, a continuation of tight fiscal policy is looking less likely. And without significant tightening, the Bank of England’s Monetary Policy Committee may well push up rates later in the year, according to F&C Investments.

“Before we get too carried away with negativity, we should note the limits of government power, for good or ill. Interest rates are set by the independent Bank of England MPC,” said F&C Investments' Bell.

“However, the next parliament is unlikely to be a source of stability and support to the markets. Just how much instability we get is as uncertain as the outcome of the election itself.”