UK investors set to plough into stockmarket in 2014

26 February 2014

More than nine in ten (91%) UK investors are looking to maintain or increase the amount they invest this year, as they become increasingly confident about the opportunities in the stockmarket in 2014.

The Schroders Global Investment Trends Report indicates that almost two thirds (64%) of UK investors are more confident this year, compared to less than half (41%) in 2013.

Over two-fifths of people plan to invest spare cash in 2014, with a further 25% saying they will use it for luxury purchases. But less than one-in-ten will use spare disposable cash to pay off debt.

When it comes to asset classes, investors are predominantly looking to invest in equities (67%), while 13% favour investing directly in UK property. Just 11% of UK investors will be looking to invest in the traditionally lower-risk bond sector.

Western Europe and North America aside, UK investors claim Asia is the region they expect to drive the strongest growth in 2014, with 58% favouring this area. However, UK investors are, in the main, too nervous to invest in Asia, with just 13% claiming they plan to plough funds into the region in 2014.

Emerging confidence

Robin Stoakley, head of UK Intermediary at Schroders, said: "There are real signs of investor confidence emerging in the UK and it appears that people are taking a more global view as they seek to capitalise on the improving economic environment. However, as investor confidence improves they should seek professional guidance in order to ensure they have a well balanced mix of investments.

"Encouragingly, our report shows that once investors have paid monthly bills, a key priority is to invest with the majority of investors choosing to do so for their retirement. Indeed, almost two-thirds of the investors polled stated retirement as their main reason for saving. We welcome this as in the future Britons will have to become more independent in their retirement."

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