You are here: Home - Investing - Getting Started - News -

Risk appetite falls but investors plan to save more this tax year

0
Written by: Paloma Kubiak
09/03/2016
Nearly one in five people will invest more this ISA season than they did last year, but a quarter say their risk appetite has declined over the same period.

Research from fund platform rplan found 18% of ISA customers will invest more than last year, while 35% will invest about the same and 12% will invest less than a year ago.

But nearly a quarter (22%) of ISA users said their risk appetite had decreased over the last year versus just 17% who said it had increased.

This is perhaps unsurprising as global stock markets have had a very shaky start to 2016 amid concerns of a slowdown in China and falling oil prices.

The findings suggest ISA users have become more cautious, with only 26% saying they currently see financial markets as attractive versus 34% a year ago. Three in five (60%) said they will invest their ISA allowance in cash, versus 51% a year ago.

What are people investing in?

Around one in four ISA users (27%) said they’ll turn to the stock market for returns this year because interest on cash is so low. The most popular investment sector among ISA users was UK equities (23%).

This was followed by property (13%), UK bonds (9%), emerging market and European equities (both 5%) and US equities (3%). One quarter of ISA users said they are still undecided.

January volatility and Brexit key factors

Stuart Dyer, rplan.co.uk’s CIO, said: “Our research shows UK investors are slightly more cautious than they were a year ago. No doubt the volatility in January and Brexit vote later this year are factors in that. But they do need to take a longer term view of five years or more and use this year’s ISA allowance before they lose it.

“If they are concerned about Brexit then they might wish to consider investing with active managers rather than taking a passive approach, as active managers have more opportunity to add value in volatile conditions.”

Dyer added that in times of volatility, investors should look to diversify their portfolio.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

Brits take tentative steps to protect their finances from a hard Brexit

British citizens living in the UK or abroad expect the economic situation to worsen in the next year due to Br...
Brits take tentative steps to protect their finances from a hard Brexit

Eight easy access accounts now pay 1.5%…but all come with a catch

Activity in the easy access market has been hotting up recently with two market-leading deals from Cynergy Ban...
Eight easy access accounts now pay 1.5%...but all come with a catch

Property market slowdown continues with longer sales and price corrections

The UK’s property market slowdown shows little sign of abating as sales take longer to be agreed and prices co...
Property market slowdown continues with longer sales and price corrections

Ryanair jetting towards US flights for £10

Ryanair is on course to achieve its long-held ambition of offering transatlantic flights to the US – and the...

Investing in car parks: a good vehicle for income seekers?

As the search for income continues, many investors are turning to alternatives, with car parks becoming increa...

A quick guide to guarantor loans – in association with Guarantor Loan Comparison

Considering a guarantor loan or becoming a guarantor yourself? Read our essential guide...

Results round-up: Companies to watch this week

Mulberry and more will face the music this week.

Product launches of the week

Select Property Group, Schroders, Leeds Building Society and more have exciting news this week.

Money Tips of the Week

Read previous post:
How over-50s are boosting their retirement income in the 0.5% world

We've now had seven years of record low interest rates but the over-50s are using various methods to boost their...

Close