Home Headlines Investor Confidence Is Growing, But Is Still 18% Down on Pre-COVID Norms

Investor Confidence Is Growing, But Is Still 18% Down on Pre-COVID Norms

by craig upton

Investor confidence is gradually rising across the UK, though has not yet returned to pre-pandemic norms. Newly published data suggests that approximately one in ten UK investors have once again begun investing since the COVID-19 crisis began and an impressive 75% are aged 35 or under.

The figures were published in this year’s Investor Index, an annual report penned by communications firm AML Group and research agency The Nursery Research and Planning. In addition, the report indicated that almost 90% of those under the age of 35 have altered their investment strategy over the course of the past 12 months.

Meanwhile, just 31% of those in the 55+ age bracket indicated that they had made significant changes to their investment strategies.

Environmental, Social & Governance (ESG) Products Prove Popular Among Younger Investors

Further findings included the growing popularity of ESG products among millennial investors. Approximately 27% of younger investors said that their portfolios included one or more responsible investments such as fixed rate property bonds, while just 4% of investors in the 55+ age bracket said the same.

“Investors feel that ethical/socially responsible financial products are more important now than at the same time last year, with three in ten of those surveyed stating that they believe that these products will be more important in the future,” reads an extract from the report.

“However, despite investors acknowledging the importance of ESG, there is a continuing perception, despite contrary evidence, that it carries a performance penalty with investors ‘prioritising financial security over wider ethical considerations’ – up five percentage points (from 23 per cent to 28 per cent).”

Interestingly, overall confidence was found to be significantly higher among older investors than their younger counterparts. Elsewhere, the figures highlighted the importance of seeking independent financial advice when carrying out investments, with those who sought the input of IFAs typically being much more confident in their portfolios and long-term prospects.

Likewise, investors with a portfolio valued at £200,000 or more expressed greater overall confidence in their financial future but across all demographics, total investor confidence levels were found to be around 18% lower than they were before the COVID-19 crisis.

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