44 per cent of UK retail investors are less confident in traditional investment classes than they were a year ago, while 36 per cent are looking to increase their allocations to alternative assets, new research has found.
A survey commissioned by peer-to-peer property lending platform Shojin showed that this trend is particularly strong among younger people, with 55 per cent of those aged between 18 to 34 planning to invest more in alternatives over the coming year.
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The survey of 914 UK adults with investment assets in excess of £10,000 excluding their home, pensions and savings, also found that investors have been spooked by recent collapses in the banking sector, with 32 per cent reporting a negative impact on their investments.
As such, 37 per cent are looking to diversify their portfolios more over the coming year.
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“The banking collapses of recent months have added doubt and uncertainty to an already testing economic climate, with runaway inflation and rising interest rates posing questions for investors and their portfolios,” said Jatin Ondhia, chief executive of Shojin. “Our research shows that UK retail investors are wary of how the shockwaves from a banking crisis could impact both their investments and the wider economy.
“Crucially, Shojin’s study highlights some of the actions that retail investors are taking amidst this turbulence in the banking sector. For one, diversification is clearly going to be a key trend – investors are likely to rebalance their portfolios in the coming year. What’s more, the research suggests many will look towards alternative asset classes rather than traditional ones in a bid to diversify their investments.”
