The easing of national lockdowns and the rollout of the Covid-19 vaccine is boosting optimism among UK investors, a new survey has found.
According to trading platform HYCM, 41 per cent of UK investors are confident the vaccine rollout will benefit their investment portfolios, with the same number saying that the easing of social distancing rules will aid their investments.
However, despite this rising confidence, cash is still the most popular asset class for UK investors, with a third of investors saying that they plan to invest more into their cash savings in the coming 12 months.
Stocks and shares was the second most popular investment option, with 22 per cent saying that they will be increasing their stocks and shares investments over the coming year, while 14 per cent said that they would be investing more in property.
Bonds and ESG investments were the next most popular options, with 11 per cent of investors planning to invest more in these sectors in the months ahead. Meanwhile, one in twelve (eight per cent) plan to invest in cryptocurrencies.
“The success of the vaccine rollout is clearly having a significant influence on investors’ mindsets,” said Giles Coghlan, chief currency analyst at HYCM.
“In terms of asset classes, UK investors can clearly see the property bubble forming, not just in the UK but around the world – property prices globally have been spurred on by low interest rates.
“It makes sense that cash savings remain popular given the uncertainty that still lingers overhead, while bonds are evidently also being considered by many. If central banks start tapering, bond yields will become more attractive, and this should see some UK investors moving into bonds from equities.”
Elsewhere in the survey, 36 per cent of investors said that the ongoing pandemic will reduce the value of their investments, while just 11 per cent believe they will profit from it. A third (33 per cent) said that they expect Brexit to harm their investments.