Investors to become more active as the economy reopens

Rebecca Tomes
July 2, 2021
(IFA Magazine)

 

A new independent survey of 735 UK investors has shown that many will become far more active in their investment plans once ‘freedom day’ arrives

  • 40% of UK investors intend to become more active in their investments once the country transitions fully out of lockdown
    • It comes as 42% say they have stalled on make new investments during the pandemic
  • 39% are gravitating towards safe-haven assets, such as property
  • 28% plan to invest or increase their investment in the stock market
  • 13% plan to invest in Bitcoin or other cryptocurrencies over the next 12 months

Two fifths of UK investors will become more active in how they invest their money once social distancing rules are fully lifted, research from FJP Investment has revealed.

The investment firm commissioned an independent survey among 735 UK investors, all of which have portfolios in excess of £20,000, not including any primary property, savings, pensions or SIPPs. It found 40% plan to begin making more investments once ‘freedom day’ arrives.

The research revealed that record low interest rates had inspired 37% of investors to move money out of savings and into other forms of investment over the past 12 months.

When it comes to asset allocation, 39% of investors said they will gravitate towards more traditional asset classes, such as property, while over a quarter (28%) plan to invest or increase their investment in the stock market once the UK transitions fully out of lockdown.

A further 13% of investors plan to invest in cryptocurrencies in the coming 12 months, with this rising to 32% among those aged between 18 and 34.

While the study suggests a renewed confidence among investors, as the end to lockdown draws near, it also found that uncertainty surrounding the pandemic (42%) and Brexit (40%) resulted in cautious attitudes, with investors pausing on making major financial decisions of late.

“As we transition out of the pandemic, the research suggests there is a renewed sense of confidence that is returning to investors. This is no doubt inspired by the fact that there are brighter economic prospects, with lockdown measures due to be fully lifted by 19 July.

“We can see that a large number of investors are feeling emboldened to make investment and financial decisions, which for many had been put on pause in light of the volatile market conditions. As such, we should expect a flurry of investment activity in the second half of 2021.

“Tellingly, property continues to be perceived as a safe asset in the eyes of investors, with the market emerging relatively unscathed from the pandemic and further highlighting its resilience as an investment asset. It will be fascinating to watch how the pent-up demand and savings are released back into the market.”

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