Investor Trends Revealed in New Research from The Nursery
Now in its fourth year, the Investor Index is an in-depth survey of investor behaviours conducted among 1100 UK adults (18+) with a minimum of £10,000 invested. Conducted jointly by London-based communications agency AML Group and the research and planning experts, The Nursery, the study has established itself as a rigorous barometer of investor behaviour based on hard data.
Introducing the self-reliant (selfish?) investor
When it comes to financial guidance, the study has revealed that UK investors are more likely to rely on their own research with 54% adopting a self-reliant approach – up 11% from last year. And of those who have never paid for financial advice, 29% of investors believe they can get all the information they need online. Investors also feel that the cost of living crisis has taught them what they need to know about investing – with 79% of younger investors (18-44) confident in a largely autonomous approach.
What cost the cost of living crisis?
Whilst 72% of all UK investors consider property to be the ultimate investment, 59% of younger investors (18-34) have stated that the cost of living crisis has stopped them from being able to buy a property. The research has also seen a significant decrease in younger investors investing to purchase a property – dropping from 38% in 2022 to 24% this year.
The rise in the cost of living has also galvanised UK investors to seek out better deals. 69% said that they were actively ‘shopping around’ with 45% saying that they were considering financial providers they had not previously heard of.
A move away from ethical
In the current economic climate, today’s UK investor is less focused on the ethical, environmental and social impact of their investments than they were 12 months ago. Just over one-third of UK investors (38%) in this year’s study stated that ESG investments were important to them – down 6% from 2022. There has also been a shift in prioritising those investments with vegan-friendly hit hardest dropping 16% from 38% to 22% and LGBTQ+ focused causes/investments dropping 4%. The demographic least focused on ethical investing is those aged 65 and over - with only one-quarter (24%) prioritising ethical investments.
Chatbots – the future of investing?
73% of UK investors believe that ChatGPT could give reliable financial advice in the future with 42% of younger investors (18-34) stating that they have already used the infamous AI chatbot for advice. Described by a business columnist at the FT as ‘fluent, clever and dangerously creative’ ChatGPT is a global phenomenon that currently has 100 million users generating monthly website visits upwards of 1.8 billion (according to latest available data published by Reuters, February 2023). And whilst early adoption from younger investors may have been expected, the research has also revealed that just over half (54%) of UK investors aged 65+ also believe that ChatGPT could be the future of financial advice.
Robo-advisors are also being used by UK investors to make financial decisions with 46% stating that they are the future of investing and 34% saying that they would prefer to use a Robo-advisor than a financial advisor.
OTHER KEY FINDINGS:
· Cryptocurrency as an investment choice remains unchanged (year-on-year) with 18% of UK investors still engaged with the volatile currency.
· 60% of investors believe long-term investments are more important than ever before.
· 37% of investors have been withdrawing funds from their current investments
· 54% have recently opened a high-interest savings account and 23% took money out of other investments to fund it.
· Investor confidence is at its highest level since the pandemic
· 31% of younger investors (18-34) are focusing on short term returns
