Investor confidence grows despite inflation worries

Confidence among UK investors has improved since the first quarter of this year, new research from easyMoney has revealed.

The peer-to-peer property lending platform asked investors how confident they were that they would see a return on their investment portfolio this year.

It found that 29 per cent of respondents said they were ‘very confident’, up from 23 per cent in the first quarter, while 42 per cent were ‘somewhat confident’, marking a 10 per cent increase on the previous quarter.

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Investors’ portfolios remain relatively unchanged, easyMoney found, with stocks and shares still the most popular asset class, followed by ISAs and bonds.

However, with interest rates on the rise, the majority of respondents said they are planning to increase their investment in ISAs, while many have also increased their investment into stocks and shares to take advantage of an unstable stock market.

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Unsurprisingly, the current level of inflation topped the table of investors’ concerns, along with rising interest rates and the cost-of-living crisis.

Despite these worries, 40 per cent of respondents are planning to invest more over the year ahead, up 11 per cent on the start of the year.

“Uncertain times often present plenty of opportunities and it seems as though the nation’s investors are keen to capitalise on the landscape we currently find ourselves in,” said Jason Ferrando, chief executive of easyMoney.

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“While many are doing so via a somewhat wobbly stock market it does provide a heightened degree of risk, but ISA investment is also proving a very popular choice in order to bring balance and certainty as interest rates continue to climb. The range of ISAs available mean that many investors can tailor their portfolio to suit their individual needs, taking advantage of some very strong rates at the same time.”