Bringing you live news and features since 2006 

Nearly half of UK investors turn risk-averse in light of Covid-19

Nearly half of UK investors believe they have become more risk-averse since the beginning of the Covid-19 pandemic, new 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 GBP20,000, not including any primary property, savings, pensions or SIPPs. It found that 44 per cent have become more risk-averse in their financial decision-making since March 2020, while 42 per cent have paused on making major investments until the pandemic has passed.
When it comes to investor appetite for new opportunities, the research revealed Brexit has amplified attitudes of caution among UK investors, with four in ten (40 per cent) saying they had become more wary of making new investments as a result.
FJP Investment’s research also found that 39 per cent of investors are currently gravitating towards more traditional asset classes, such as property. Further, the majority (56 per cent) are preferring to leave their money in a savings account, despite the record-low interest rates in the UK.
Looking ahead, 40 per cent of UK investors plan to become far more active in their investments once ‘freedom day’ arrives.

According to the survey, a further 13 per cent of investors plan to invest in bitcoin or other cryptocurrencies in the coming 12 months, with this rising to 32 per cent among those aged between 18 and 34.
Jamie Johnson, CEO of FJP Investment, says: “In the midst of the pandemic, it is clear that a prevailing sentiment of risk aversion has set in among investors, which has only been exacerbated by further uncertainty in the build-up to and fallout from Brexit. Combined, these factors have led to a state of inertia, with investors holding fire on making any major financial decisions – indeed, many are more comfortable leaving money in savings at present, despite record-low interest rates.
“Tellingly, property continues to be perceived as a safe asset in the eyes of investors, with the market emerging from the pandemic in remarkably buoyant form, further highlighting its resilience as an investment asset. It will be fascinating to watch how, as lockdown measures are fully lifted on 21 June (all being well), investors spark back into life – I expect pent-up demand and savings to be released, resulting in a flurry of investment activity in the second half of 2021.”

Latest News

Morgan Stanley Investment Management has announced the launch of an ETF platform with the listing of six Calvert ETFs on..
The UK's HM Treasury has published a note saying that the government will set out ambitious plans to ‘robustly regulate..
Digital asset manager CoinShares has announced that CoinShares Digital Securities Limited, the wholly owned subsidiary and Issuer of the CoinShares..
European white labeller HANetf reports that delighted to announce that Sprott Uranium Miners UCITS ETF (URNM) has now passed the..

Related Articles

We are very pleased to open the voting for service providers (selected by nominations) and ETP issuers, selected by our data partners, Trackinsight, for the European ETF Express Awards, in...
Osprey Funds’ founder and CEO, Greg King, has written an open letter to Barry Silbert, majority owner of Digital Currency Group which owns Grayscale, suggesting that he uses his powers...
Comparing multifactor ETFs to the popular Marvel Avengers series may seem a bit of a stretch but recent analysis from Morningstar suggests the investment strategies have more in common with...
Canadian asset manager Mackenzie Investments, with CAD186.6 billion under management, has published its annual Mackenzie Investments Year-End ETF Report. ...
Subscribe to the ETF Express newsletter

Subscribe for access to our weekly newsletter, newsletter archive, updates on the site and exclusive email content.

Marketing by