Two thirds of all UK investors believe that a change in power will have a positive impact on their investments, with that figure rising to 85% amongst younger investors aged 18-44 – according to the Investor Index 2024, an annual in-depth study of UK investor behaviours, published this week.
Now in its fifth year, the study, which was conducted jointly by London-based communications agency AML Group and the research and planning experts The Nursery, polled 1100 UK adults (18+) with a minimum of £10,000 invested with the aim of gathering new and robust investor insights and to track overall confidence levels.
And whilst the pending election has investors feeling optimistic, there are a number of factors that are contributing to an over-arching feeling of confidence – the highest in five years.
Investors turning to AI for financial advice
AI continues to gain traction as a go-to source for financial advice with 1:6 investors (45-54) stating that they have used ChatGPT for advice in the past year with three-quarters (75%) of all UK investors believing that ChatGPT could provide reliable financial advice in the future.
And ‘home-grown’ products have also landed well. The new British ISA announced by Jeremy Hunt as part of the 2024 Spring Budget has been embraced by UK investors. 66% of all investors polled stated that they would use the new British ISA with that figure rising to 79% among the UK’s youngest investors (18-34).
- Share Tip: Chinese AI specialist shares flying again after 1H loss
- Calmer heads asking new questions – trader’s weekly playbook
- Prepping for the US election – trader’s weekly playbook
Confidence among UK investors is the highest it’s been since the study launched in 2020. The Index, based on a pre-pandemic confidence benchmark number of 100, currently sits at 105 – 17 points up from last year and 43 points up from the 2020 study that was carried out during the pandemic.
40% of UK investors have increased the amount they invested in the past 12 months with 66% looking to long term opportunities (up 10% from 2023) – with only 15% indicating that they are seeking short term investment opportunities.
“Investors have retained the self-reliance they gained navigating the past few years,” said Sarah Nunneley, Senior Strategist at AML Group “with this confidence also emboldened by external market uplifts, creating not just a return in confidence, but a true revival. A new, more robust type of investor.”
Investors less worried about the Ukraine war
Political instability across the global landscape is a concern for a third of investors (32% while the perceived impact of current events on returns is much lower. The impact of inflation is down to 40% (25.9% decrease vs 2022), increased cost of living 39% (20.4% decrease vs 2022), Russia / Ukraine war 30% (45.5% decrease vs 2022).
The influence of ‘finfluencers’ on investment decisions has also fallen (55% to 43%) and trust in finfluencers is even falling among young people (18-34, 33% – 22%; 35-44, 32% – 22%), as the FCA crackdown on unregulated advice continues.
Those investing to purchase a property have a wider product portfolio, and have increased holdings in 2023 in commodities, crypto, collectibles, infrastructure, and NFTs.
