Investor Index 2024 Reveals UK Investors Optimistic for Future under New Government
London, UK – The results of the Investor Index 2024 have been released today, revealing that 65% of UK investors believe a change in power will have a positive impact on their investments. The annual study, now in its 5th year, was conducted by London-based communications agency AML Group and research and planning experts The Nursery. It polled 1100 UK adults over the age of 18 with a minimum of £10,000 invested, to gather new and robust insights into investor behaviors and track overall confidence levels.
The study found that younger investors aged 18-44 are especially optimistic, with 85% believing a change in power will have a positive impact on their investments. This sentiment is likely influenced by the upcoming election and potential for new policies and economic outlook.
Overall, there is a feeling of confidence among UK investors, with the Investor Index currently sitting at 105 – 17 points higher than last year and 43 points higher than the 2020 study conducted during the pandemic.
One contributing factor to this optimism is the growing use of AI as a source for financial advice. According to the study, 1 in 6 investors aged 45-54 have used ChatGPT for advice in the past year. Additionally, 75% of all UK investors believe that ChatGPT could provide reliable financial advice in the future.
The study also revealed that UK investors have embraced the new British ISA announced by Jeremy Hunt as part of the 2024 Spring Budget. 66% of investors polled stated that they would use the new British ISA, with this figure rising to 79% among the youngest investors aged 18-34.
Sarah Nunneley, Senior Strategist at AML Group, comments on the findings, stating, “Investors have retained the self-reliance they gained navigating the past few years, with this confidence also emboldened by external market uplifts, creating not just a return in confidence, but a true revival. A new, more robust type of investor.”
Other key findings from the Investor Index 2024 include a concern for political instability across the global landscape among a third of investors (32%). However, the perceived impact of current events on returns is much lower, with the impact of inflation decreasing by 25.9% compared to 2022, and the increased cost of living decreasing by 20.4%.
The study also found that the influence of “finfluencers” on investment decisions is falling, with only 43% of investors citing them as a factor, compared to 55% in the previous year. This can be attributed to the Financial Conduct Authority’s crackdown on unregulated financial advice. Trust in finfluencers is also falling among young people aged 18-34 (33% – 22%) and those aged 35-44 (32% – 22%).
The Investor Index also revealed that those investing to purchase a property have a wider product portfolio, with increased holdings in commodities, crypto, collectibles, infrastructure, and NFTs in 2023.
Overall, the Investor Index 2024 paints a positive picture for the future of UK investors under the new government. With an increase in confidence and a more diverse investment portfolio, it is clear that UK investors are well-positioned to weather any future economic challenges.
ENDS/
Derick is an experienced reporter having held multiple senior roles for large publishers across Europe. Specialist subjects include small business and financial emerging markets.