A new independent survey of more than 900 UK-based investors has uncovered which assets they will be buying and selling in the coming 12 months. It found:
Q4 2020 hedge fund letters, conferences and more
- The most popular places UK investors have put their money are cash savings (70%), stocks & shares (40%), and property (38%)
- 38% of investors will be putting more of their money into cash savings over the coming 12 months
- 27% of investors will be investing into stocks and shares
- 21% will be investing in property
- The least popular asset classes are cryptocurrencies (21%), forex (20%) and classic cars (19%)
- However, 18% of investors will be investing in cryptocurrencies in 2021
- 39% of investors say the pandemic has radically altered their finance and investment strategy
UK Investors Continue To Love Cash Savings
Cash savings continues to remain the most popular asset class among UK investors, new research commissioned by HYCM has found.
More than 900 UK-based investors, all of whom have investments in excess of £10,000, excluding the value of their residential property and workplace pensions, were surveyed on behalf of the trading broker.
The research found that the most common asset classes at present are cash savings (70%), stocks & shares (40%), and property (38%).
Asked about their investment plans in 2021, 38% of all investors said they will be putting more money into their savings account. Over a quarter (27%) will be buying more shares while 21% are looking to invest in property.
When it came to the least popular asset classes, only 21% of investors said they held cryptocurrencies, 20% in forex (foreign currencies) and 19% in classic cars. However, 18% of investors said they will be investing in cryptocurrencies in 2021.
Overall, 39% of investors say the pandemic has radically altered their finance and investment strategy. Nonetheless, nearly three-quarters (72%) are confident in the way they are managing their finances and investments in the current climate, with 53% confident they will be in a stronger financial position following the pandemic.
How Investors Are Managing Their Portfolio
Giles Coghlan, Chief Currency Analyst at HYCM, said: “HYCM has been regularly commissioning surveys to uncover how investors are managing their portfolios. Interestingly, while there have been some small fluctuations, today’s results are very similar to the findings first uncovered at the beginning of the COVID-19 pandemic.
“While fiscal and monetary stimulus have been positively received by the market, investors are still treading carefully. This is why cash remains king, despite interest rates being at record lows.
“The big question now is what kind of assurances investors will need to look to beyond cash savings. Should the vaccine rollout and current lockdown successfully curb COVID-19 cases, I’d expect more investors to start moving some of their cash into other assets.”
Stavros Lambouris, CEO at HYCM International said: “The research shows that investors feel confident in the way they are managing their finances. This is positive and reflects the adaptability of investors as they navigate the market conditions brought on by the pandemic.
“As was the case in early 2020, markets are riding high at the moment. However, we should not let this overshadow the problems still posed by COVID-19. A sudden change in circumstances could result in an abrupt risk-off scenario, with investors retreating to safe-haven assets.”
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About HYCM
Giles Coghlan is Chief Currency Analyst, HYCM – an online provider of forex and Contracts for Difference (CFDs) trading services for both retail and institutional traders. HYCM is regulated by the internationally recognized financial regulator FCA. HYCM is backed by the Henyep Capital Markets Group established in 1977 with investments in property, financial services, charity, and education. The Group via its relevant subsidiaries have representations in Hong Kong, United Kingdom, Dubai, and Cyprus.
About the research
The market research was carried out between 15th and 20th January 2021 among 2,008 UK adults via an online survey by independent market research agency Opinium. Opinium is a member of the Market Research Society (MRS) Company Partner Service, whose code of conduct and quality commitment it strictly adheres to.
Its MRS membership means that it adheres to strict guidelines regarding all phases of research, including research design and data collection; communicating with respondents; conducting fieldwork; analysis and reporting; data storage. The data sample of 2,008 UK adults is fully nationally representative. This means the sample is weighted to ONS criteria so that the gender, age, social grade, region and city of the respondents corresponds to the UK population as a whole.
Within this sample, 975 respondents had investment portfolios worth in excess of £10,000 – this includes all assets from bonds and currencies to commodities and stocks and shares but excludes any property that is used as their primary residency.
