New research shows that the 2024 General Election has generated confidence amongst investors

65% of all UK investors believe that a change in power will have a positive impact on their investments, with that figure rising to 85% amongst younger investors aged 18-44 – according to the Investor Index 2024, an annual in-depth study of UK investor behaviours, which was published recently.

Now in its 5th year, the study, conducted jointly by communications agency AML Group and research and planning organisation The Nursery, polled 1100 UK adults (18+) with a minimum of £10,000 invested to gather new and robust investor insights and to track overall confidence levels, and whilst the pending election has investors feeling optimistic, there are a number of factors that are contributing to an over-arching feeling of confidence – the highest in 5 years.

AI continues to gain traction as a go-to source for financial advice with 1:6 investors (45-54) stating that they have used ChatGPT for advice in the past year with three-quarters (75%) of all UK investors believing that ChatGPT could provide reliable financial advice in the future, and ‘home-grown’ products have also landed well. The new British ISA announced by Jeremy Hunt as part of the 2024 Spring Budget has been embraced by UK investors. 66% of all investors polled stated that they would use the new British ISA with that figure rising to 79% among the UK’s youngest investors (18-34).

Confidence among UK investors is the highest it’s been since the study launched in 2020. The Index, based on a pre-pandemic confidence benchmark number of 100, currently sits at 105 – 17 points up from last year and 43 points up from the 2020 study that was carried out during the pandemic.

40% of UK investors have increased the amount they invested in the past 12 months with 66% looking to long term opportunities (up 10% from 2023) – with only 15% indicating that they are seeking short term investment opportunities.

“Investors have retained the self-reliance they gained navigating the past few years” says Sarah Nunneley, Senior Strategist at AML Group “with this confidence also emboldened by external market uplifts, creating not just a return in confidence, but a true revival. A new, more robust type of investor.”

Other key findings:

• Political instability across the global landscape is a concern for a third of investors (32%).
• Perceived impact of current events on returns is much lower. The impact of inflation is down to 40% (25.9% decrease vs 2022), increased cost of living 39% (20.4% decrease vs 2022), Russia / Ukraine war 30% (45.5% decrease vs 2022).
• Influence of finfluencers on investment decisions falls (55% to 43%) and trust in finfluencers falling among young people (18-34, 33% – 22%; 35-44, 32% – 22%), as the FCA crackdown on unregulated advice.
• Those investing to purchase a property have a wider product portfolio, and have increased holdings in 2023 in commodities, crypto, collectibles, infrastructure, and NFTs