# UK INVESTORS HAVE THEIR SAY: NEW RESEARCH
Author:  Pal Sinha, Barnali 
Author URL: https://financedigest.com/author/pal-sinha-barnali
Published: 2021-07-06
Category: Research Reports
Category URL: https://financedigest.com/category/research-reports
Meta Title: UK Investor Confidence Surges: Millennials Lead Ethical
Meta Description: Discover the latest trends in UK investor confidence, generational differences, and interest in ethical investing. Get insights now!
URL: https://financedigest.com/uk-investors-have-their-say-new-researchhtml

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_Confidence levels are up, Millennials make their mark and interest in ethical investing hits new highs._

**LONDON, JUNE 30** **TH** **2021:** Confidence levels amongst UK investors have risen 20 points (62 – 82) in the last 12 months according to new research amongst 1100 UK investors (£10k+).

The _Investor Index_, now in its second year, is conducted jointly by London-based communications agency **AML Group** and research agency **The Nursery Research and Planning** and was launched in April 2020 to assess the immediate impact of Covid 19 on investors and the UK investment marketplace. The first [report of its kind to provide an objective overview of the industry based on hard data – the study was welcomed as a barometer of post-Covid investor](https://www.financedigest.com/influx-of-one-time-investors-swapping-stocks-for-bricks-and-mortar-reports-agency.html "Influx of ‘one-time’ investors swapping stocks for bricks and mortar reports agency") behaviours.

One year on, and still in the grip of the pandemic, the 2021 study has revealed some significant [changes and ‘recalibrations’ amongst investors](https://www.financedigest.com/bayer-hits-8-month-high-as-investors-welcome-ceo-change.html "Bayer hits 8-month high as investors welcome CEO change").

**Confidence returns – but not to pre-pandemic levels**

Over the past 12 months, confidence levels have risen most amongst older investors (55+) up 30 points (54 – 84), investors that are retired up 27 points (57 – 84), those that use [financial advisers](https://www.financedigest.com/smart365-to-unite-advisers-and-technology-for-better-financial-decisions.html "Smart365 to unite advisers and technology for better financial decisions") up 31 points (65 – 96) and investors with a portfolio of £200k+  – up 38 points (55 – 93).

The study has also [revealed a disparity in gender confidence levels – with men indicating a 25 point rise over the last 12 months](https://www.financedigest.com/august-the-most-popular-month-to-start-a-holiday-home-search-reveals-portal.html "AUGUST THE MOST POPULAR MONTH TO START A HOLIDAY HOME SEARCH REVEALS PORTAL") (61- 86) compared to a rise in confidence levels of just 10 points among female investors (65 – 75).

However whilst the results are cause for some degree of optimism – investor confidence levels are still 18 points down from [pre-Covid](https://www.financedigest.com/foreign-tourism-to-portugal-surpasses-pre-covid-levels-in-july.html "Foreign tourism to Portugal surpasses pre-COVID levels in July") levels.

**Gen Z/Millennials Vs Baby Boomers – the emerging generational divide**

10% of UK investors have started [investing since the pandemic](https://www.financedigest.com/3-investing-lessons-you-can-learn-from-still-evolving-pandemic.html "3 Investing lessons you can learn from still-evolving pandemic") began – and of those new investors three-quarters (74%) are under 35s.

It’s a changing landscape with the younger investor [bringing](https://www.financedigest.com/worlds-best-islands-bring-holidaymakers-and-investors-flocking-to-the-philippines.html "‘World’s best islands’ bring holidaymakers and investors flocking to the Philippines") different attitudes and priorities to the investor table.

89% of under 35s have changed their [investment strategy](https://www.financedigest.com/investing-in-commodities-as-a-retirement-strategy.html "Investing In Commodities As A Retirement Strategy") over the last year vs. 31% of 55+ investors. Younger investors are also increasingly looking to ESG products – with 27% including [responsible investments](https://www.financedigest.com/creating-sustainable-value-through-responsible-investment.html "Creating sustainable value through responsible investment") in their portfolio compared to only 4% of investors aged 55 and older. Younger investors are also more focused on the long game – with 30% looking to longer term [investments](https://www.financedigest.com/investment-inspection-trips-bring-liverpool-to-life-for-asian-property-investors.html "Investment Inspection Trips bring Liverpool to life for Asian property investors") compared to 8% of investors 55+.

When it comes to investment decisions, younger [investors are increasingly turning](https://www.financedigest.com/certainty-in-an-uncertain-world-post-brexit-investors-turn-to-commercial-property-and-fixed-returns.html "Certainty in an uncertain world – post-Brexit investors turn to commercial property and fixed returns") to family (40%), banks (30%) and friends (27%) for advice.

**It’s a gift – investors demonstrate a change of attitude**

57% of UK investors have [changed their investment](https://www.financedigest.com/wealth-tech-is-changing-how-we-invest.html "Wealth Tech is Changing How We Invest") strategy since the pandemic started – with a focus on products offering ‘long term growth’ (46%) over ‘short term growth’ (30%).

Investors are increasingly concerned about their [children’s financial](https://www.financedigest.com/why-teaching-your-children-financial-literacy-from-a-young-age-will-set-them-up-for-success.html "Why teaching your children financial literacy from a young age will set them up for success") security. 70% of [investors are aware of the £3,000 wealth transfer allowance with 38% having given £500 or more over the last 12 months – with children the biggest](https://www.financedigest.com/top-ten-biggest-mistakes-by-novice-investors-and-how-to-avoid-them.html "TOP TEN BIGGEST MISTAKES BY NOVICE INVESTORS – AND HOW TO AVOID THEM") recipients (72%). Indeed the average amount gifted in 2020 was £8087 compared to £5421 pre pandemic (2019) – a 49% increase and a clear indicator of the want for investors to safeguard futures for loved ones.

**How** **_invested_** **is the UK [investor in Responsible](https://www.financedigest.com/stocks-with-greater-socially-responsible-investor-demand-saw-weaker-losses-during-the-covid-19-crash.html "Stocks with greater socially responsible investor demand saw weaker losses during the COVID-19 crash") Investing?**

[Investors feel that ethical/socially responsible financial products are more important](https://www.financedigest.com/despite-the-headwinds-investors-have-important-reasons-to-be-cheerful.html "DESPITE THE HEADWINDS, INVESTORS HAVE IMPORTANT REASONS TO BE CHEERFUL") now than at the same time last year – up 9 percentage points (23% – 32%) with three in ten of those surveyed stating that they believe that these products will be more important in the future – up six percentage points (24% – 30%).

However despite [investors acknowledging the importance of ESG/RI there is a continuing](https://www.financedigest.com/southampton-development-continues-to-excite-local-investors.html "SOUTHAMPTON DEVELOPMENT CONTINUES TO EXCITE LOCAL INVESTORS") perception, despite contrary evidence, that it carries a performance penalty with investors ‘prioritising financial security over wider ethical considerations’ – up five percentage points (23% – 28%).

**Younger investors look to DIY platforms**

Since the start of the pandemic in March 2020, four in ten investors under 35 (39%) have invested more with DIY platforms – compared to just 14% of 55+. And while the younger investor has indicated a ‘happy to do it myself’ attitude regarding [financial planning and investments](https://www.financedigest.com/how-financial-services-leaders-can-prioritise-cybersecurity-investment.html "How financial services leaders can prioritise cybersecurity investment") they are less confident when it comes to their feelings about the industry. Just under one-third of under 35s (29%) are confident markets will [bounce back](https://www.financedigest.com/biotech-stocks-pin-bounce-back-hopes-on-ma-boost.html "Biotech stocks pin bounce back hopes on M&A boost") compared to more than half (52%) of investors aged 55+.

Perhaps predictably, younger investors are more tapped into [trends and news stories connected to investing](https://www.financedigest.com/quantamental-investment-trends-to-make-profits-through-creative-skills.html "Quantamental Investment Trends to Make Profits Through Creative Skills").

39% of under 35s cited an awareness of the growth in DIY platforms with 44% familiar with the story around Reddit users driving up the [share price of Game Stop and 31% aware of the rise](https://www.financedigest.com/asian-shares-rise-dollar-dips-ahead-of-fed-policy-decision.html "Asian shares rise, dollar dips ahead of Fed policy decision") in silver prices. [Investors aged 55+ recorded significantly lower](https://www.financedigest.com/investors-eye-lower-wall-street-on-powell-nerves.html "Investors eye lower Wall Street on Powell nerves") awareness across all trends.

**Top 10 findings:**

1. Investor confidence levels (overall index score) – 82 (up 20 points)
2. Confidence levels amongst men – 86 (up 25 points)
3. Confidence levels amongst women – 75 (up 10 points)
4. Confidence levels amongst under 35s – 74 (up 4 points)
5. Percentage of investors who have increased amounts invested since Covid-19 – 36%
6. Changed Investment [strategy since the start of the pandemic](https://www.financedigest.com/four-digitalization-strategies-for-banks-during-the-pandemic-and-beyond.html "Four Digitalization Strategies for Banks During the Pandemic and Beyond") – 57%
7. Ethical products considered more important now – 32% (up 9 percentage points)
8. Percentage of all new investors (in the last 12 months) that are women – 63%
9. Under 35s who have increased DIY investments since Covid – 39%

**METHODOLOGY:** 1,100 nationally representative interviews were conducted online in April 2021 from an adult sample with £10,000+ of investments. Respondents were recruited from Dynata’s online access panels. 7 in-depth interviews were conducted  with a mix of IFAs and [Wealth Managers](https://www.financedigest.com/analysis-credit-suisse-collapse-threatens-switzerlands-wealth-management-crown.html "Analysis-Credit Suisse collapse threatens Switzerland’s wealth management crown") – also in April 2021.

**ABOUT AML GROUP:** AML Group does simple ideas for a complicated world. Based in central London, they take an independent approach to global campaigns for [clients in complex](https://www.financedigest.com/how-to-support-clients-with-complex-succession-planning.html "How to support clients with complex succession planning"), regulated, intermediated markets like finance, pro services, security, technology and government. Independently owned and independently minded they are FSF’s [financial services](https://www.financedigest.com/four-tips-to-help-reduce-employee-ghosting-in-financial-services.html "Four tips to help reduce employee ghosting in financial services") Agency of the Year and recently scored a 90% happiness rating amongst staff and clients. [www.aml-group.com](https://emea01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.aml-group.com%2F&data=04%7C01%7C%7C512a5b11d2944822ac7608d93bccdd93%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637606573348051587%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=hxV%2BCF5S9zIJAJpMDk5kQbPINZCLw8nagWx1YPNDLDM%3D&reserved=0)

**ABOUT THE NURSERY RESEARCH & PLANNING:** The Nursery is a specialist brand, [communications and experience](https://www.financedigest.com/one-app-for-a-total-communications-experience.html "One App for a Total Communications Experience") research agency providing its clients with constructive, developmental research to help brands grow and businesses thrive. Through a combination of qualitative and quantitative [research with advanced](https://www.financedigest.com/lumen-research-and-tvision-announce-global-partnership-for-advanced-attention-first-measurement-and-media-buying.html "Lumen Research and TVision Announce Global Partnership for Advanced Attention-First Measurement and Media Buying") data analytics we deliver compelling, impactful insights that tell a clear story and provide clear strategic direction. [www.the-nursery.net](https://emea01.safelinks.protection.outlook.com/?url=http%3A%2F%2Fwww.the-nursery.net%2F&data=04%7C01%7C%7C512a5b11d2944822ac7608d93bccdd93%7C84df9e7fe9f640afb435aaaaaaaaaaaa%7C1%7C0%7C637606573348051587%7CUnknown%7CTWFpbGZsb3d8eyJWIjoiMC4wLjAwMDAiLCJQIjoiV2luMzIiLCJBTiI6Ik1haWwiLCJXVCI6Mn0%3D%7C1000&sdata=NHptYRPixdwSAqJXbeq1N7uXuKS9Lbxysvytqhw213k%3D&reserved=0)


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