65% of UK investors are optimistic about the future of their investments, believing that a change in power will have a positive impact, according to the annual Investor Index 2024. The study, conducted by London-based communications agency AML Group and research and planning experts The Nursery, surveyed 1100 UK adults (18+) with a minimum of £10,000 invested to gather new insights and track overall confidence levels.
The study, now in its 5th year, found that younger investors aged 18-44 are even more confident, with 85% believing a change in power will have a positive impact on their investments. This increase in optimism can also be attributed to a number of other factors, making it the highest level of confidence in 5 years.
One contributing factor is the growing use of AI as a source for financial advice. The study found that 1 in 6 investors aged 45-54 have used ChatGPT for advice in the past year, and 75% of all UK investors believe that ChatGPT could provide reliable financial advice in the future.
Another factor is the introduction of a new British ISA announced by Jeremy Hunt as part of the 2024 Spring Budget. 66% of all investors polled stated that they would use the new British ISA, with the number rising to 79% among the youngest investors (18-34).
Overall, confidence among UK investors is at its highest since the study began in 2020. The Index, which is based on a pre-pandemic confidence benchmark number of 100, currently sits at 105, marking a 17 point increase from last year and a 43 point increase from the 2020 study conducted during the pandemic.
The study also revealed that 40% of UK investors have increased the amount they invested in the past 12 months, and 66% are looking at long-term opportunities. Only 15% are seeking short-term investment opportunities.
According to Sarah Nunneley, Senior Strategist at AML Group, investors have retained the self-reliance they gained during the past few years, and this confidence has been further bolstered by external market improvements, creating a true revival and a more robust type of investor.
Other key findings from the study include concerns about political instability across the global landscape, with 32% of investors citing it as a concern. However, the perceived impact of current events on returns is much lower, with only 40% citing inflation as an issue, a 25.9% decrease from 2022.
The study also found a decrease in the influence of “finfluencers” on investment decisions, with only 43% of investors citing their influence, down from 55% in the previous year. Trust in finfluencers has also fallen among young people, with those aged 18-34 reporting a decrease from 33% to 22%.
The study also revealed that investors looking to purchase property have a wider product portfolio, with an increase in holdings in commodities, cryptocurrencies, collectibles, infrastructure, and NFTs in 2023.
Overall, the Investor Index 2024 paints a positive picture for UK investors, with confidence levels at their highest in 5 years and a diverse range of investment opportunities on the horizon.
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