New data reported in The Investor Index has shown investor confidence appears to be returning. The research for the second annual Investor Index was carried out by the AML Group and The Nursery Research and Planning.
The Investor Index was launched following the initial outbreak of the pandemic, and its purpose was to look at the impact of Covid-19 on UK investors and investments. While the pandemic continues to affect the nation, the most recent report shows that confidence among investors has increased by 20 points.
As part of the most recent research, officials looked at 1100 UK investors with over £10,000 in investments. They concluded that overall confidence levels had increased from 62 points to 82 points over the past 12 months. This is good news, but researchers also pointed out that confidence had not yet returned to pre-pandemic levels.
What the data shows
According to the 2021 Investor Index report, the increase in confidence levels varies between age groups.
The data showed confidence levels among older investors aged 55 and over increased by 30 points. Among retired investors, confidence levels were up by 27 points, while the increase stood at 31 points among those who use financial advisors. In addition, the data showed that there was a 38-point increase among investors with portfolios worth £200,000 or more.
The report also showed a difference in confidence level increases between males and females. Over the past 12 months, there was a 25-point increase in confidence among male investors, but this dropped to just ten points for females.
The picture is largely good news, given that the pandemic continues to wreak havoc across the country. However, the data shows that confidence levels are still down by 18 points compared to pre-pandemic.
The younger generation takes an interest in investing
One of the other things highlighted by the data was that many younger people have become involved in investing over the past year. Many have been able to jump on board thanks to the modern technology and tools they have been brought up with, including apps, making it easier for them to get involved.
Figures showed that 10% of investors in the UK only started investing since the start of the pandemic, and close to three-quarters of these were aged 35 or under. The report also revealed that 40% of investors in this age group turned to family when seeking advice about investments in this age group, while 30% turned to banks. It also showed that 27% turned to friends for investment advice.
One of the other points highlighted by the data is that more investors are interested in ethical investing. Many investors are now turning to ESG products, and figures showed that 27% of younger investors had responsible investments as part of their portfolio. However, this fell to just 4% in the over-55s age group.