They believe their portfolio will bring a return over the new financial year
While the economic landscape, cost-of-living crisis, and the ongoing conflict in Ukraine continue to cause concern, four in five, or 80%, of UK investors have confidence that their portfolio will bring a return over the new financial year.
A survey of UK investors commissioned by real estate investment platform easyMoney has found that confidence among UK investors remains high, with just 20% stating that they weren’t confident that their portfolio would bring a return in the new financial year.
easyMoney, however, reported that concerns remain for the majority, with the general economic landscape being the largest concern, while the current cost-of-living crisis and the ongoing conflict in the Ukraine also ranked high.
With these concerns in mind, 63% stated that they plan to keep their portfolio as is for the year ahead, although 29% have plans to make further investments, while just 8% are going to reduce their portfolio size.
When it comes to the most popular channels, stocks, and shares were the most prominent path of investment, followed by individual savings accounts (ISAs), bonds, and Index or Mutual Funds.
Just 35% of investors stated that they had maximised the tax-free ISA allowance open to them for the current tax year ahead of this week’s deadline. When it comes to ISA investment specifically, stocks and shares ISAs have proved the most popular, followed by cash ISAs.
Despite the far stronger rates of return on offer, among other benefits, the Innovative Finance ISA was the least widely utilised by investors, according to easyMoney’s research.
“In what has become an increasingly difficult landscape, it’s great to see that investor confidence remains robust for the year ahead,” Jason Ferrando (pictured), chief executive at easyMoney, said. “This is no doubt the result of a varied approach to investing and the benefits that a diverse portfolio can bring.
“What is perhaps surprising is the fact that so few are utilising the tax-free allowance open to them via ISA investment. At the same time, the majority are also sticking with the more established routes of a stocks and shares or cash ISA, despite other products, such as the Innovative Finance ISA, presenting a far stronger return.
“However, the latter is gaining ground as investors look to bolster their returns in darker economic times, with the flexibility that an IFISA provides also proving a popular draw. Our advice, whichever path you decide on, is make sure you maximise your tax-free ISA allowance this financial year.”
Want to be regularly updated with mortgage news and features? Get exclusive interviews, breaking news, and industry events in your inbox – subscribe to our FREE daily newsletter. You can also follow us on Facebook, Twitter, and LinkedIn.
