UK investors seek diversification to weather economic turmoil
UK investors are diversifying their investment portfolios amid rising interest rates and high inflation, new research has found.
According to a new survey from Shojin, almost two thirds (65 per cent) of investors have adapted their investment strategies over the past year due to macro-economic factors.
Meanwhile, 38 per cent said that they plan to diversify their investment strategy in the next 12 months.
57 per cent of UK retail investors said that they will prioritise investments which offer set returns within an agreed time period.
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“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,” said Jatin Ondhia, chief executive of Shojin.
“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.”
More than half (55 per cent) of investors told Shojin that they fear that an economic recession in the UK would negatively impact their investments. However, overall investors appear to be cautiously optimistic regarding their investment portfolios.
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“As we move forward, there is a sense of cautious optimism – most (57 per cent) UK investors think the worst of the economic turbulence from the past 18 months has now passed,” said Ondhia.
“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 involve in the months to come.”
The research also found that 67 per cent of investors plan to increase the amount of money that they have saved in ISAs, while 40 per cent intend to increase their use of apps and online platforms to manage their investments directly.
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