The FCA-regulated investment platform Shojin has just released a survey among 2,000 UK adults, assessing investors' attitudes to the new investment landscape.
In the next 12 months, UK investors will seek diversification, ISAs and investments offering fixed returns in response to their concerns about the health of the UK economy, new research released by Shojin reveals.
The research was carried out in September among 2,000 UK adults via an online survey by research agency Opinium, of which 964 have investment portfolios worth in excess of £10,000 ($12,400) – this includes all forms of investments but discounts their savings and property used as a primary residency.
The research found that two thirds (65 per cent) of UK retail investors have adapted their investment strategies in response to rising interest rates and high inflation over the past 12 months. But economic fears remain, with 55 per cent worrying that the UK economy entering a recession would negatively impact their investments.
When looking forward to the next 12 months, 38 per cent of retail investors said they would diversify their investment strategy, while 53 per cent plan to keep their investment strategy largely the same as it has been throughout 2023.
Elsewhere, the research shows that 57 per cent of UK retail investors will prioritise investments that offer set returns within an agreed time period. Two thirds plan to increase the amount of money they have saved in ISAs.
The research also highlighted the prominent role technology will play in retail investors’ strategies, with 40 per cent planning to increase their use of apps and online platforms to manage investments directly.
“Our research shows that while UK investors are navigating the complex financial landscape with adaptability and resilience, concerns still linger about the state of the national economy. Understandably, many are likely to take a low-risk approach over the next 12 months. Meanwhile, it's positive to see a growing number of investors taking proactive steps and beginning to diversify their portfolios,” Jatin Ondhia, CEO of Shojin said.
“Each investor must assess their appetite and ability to manage risk. As part of this calculation, they ought to consider diversification, which can act as a shield against market volatility and offer a hedge against uncertainties,” Ondhia added.
“As we move forward, there is a sense of cautious optimism – most (57 per cent) [of] UK investors think the worst of the economic turbulence from the past 18 months has now passed. Clearly, the government needs to rebuild trust in the state of the economy. But investors must remain in control of their decisions; they have to ensure they’re making choices that align with their risk tolerance and long-term goals. It will be fascinating to see how the investment landscape continues to evolve in the months to come,” Ondhia said.
Shojin is an FCA-regulated online real estate investment platform. Its Innovative Finance ISA enables investors to diversify their investment strategy and take advantage of tax incentives to grow capital.