UK investor confidence is rising, although it has yet to return to pre-pandemic levels, a new report has revealed.
According to The Investor Index – an annual report authored by communications firm AML Group and research agency The Nursery Research and Planning – 10 per cent of UK investors have started investing since the pandemic began, with three quarters of these new investors under the age of 35.
The report also found that 89 per cent of under 35s have changed their investment strategy over the last year. This compares with just 31 per cent of investors aged 55 and over.
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Millennial investors are also more likely to consider ESG products, with 27 per cent including responsible investments in their portfolio, compared to only four per cent of investors aged 55 and older.
“Investors feel that ethical/socially responsible financial products are more important now than at the same time last year, with three in ten of those surveyed stating that they believe that these products will be more important in the future,” the report concluded.
“However despite investors acknowledging the importance of ESG, there is a continuing perception, despite contrary evidence, that it carries a performance penalty with investors ‘prioritising financial security over wider ethical considerations’ – up five percentage points (from 23 per cent – 28 per cent).”
The report also found that older investors were more confident than younger investors, while investors who use financial advisors and those with a portfolio in excess of £200,000 were more likely to be confident about their financial future.
However, investor confidence levels are still 18 points down from pre-Covid levels.