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- UK Consumers and Investing Report 2024
UK Consumers and Investing Report 2024
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The cost-of-living crisis has curtailed disposable incomes, prompting some investors to pause or reduce investment activities. In 2023, there were net outflows of £24.3 billion, with equity funds experiencing the largest impact, losing £22.4 billion in net retail sales. However, as economic pressures ease, improving confidence and financial stability are likely to reignite market engagement.
Fluctuations in global markets can create instability. 63% of investors are concerned about how the current economic climate will impact their investment. When investors step back, trading volumes tend to decline. This drop in activity impacts investment platforms that depend on transaction or management fees for revenue.
Engaging consumers with significant savings but who currently don’t invest presents a significant opportunity for the market. Many of these individuals hold misconceptions about the complexity and risks associated with investing. In fact, a third of non-investors with more than £10,000 in cash savings feel they don’t have enough to invest. By addressing these misconceptions and providing clear educational resources to boost understanding, investment platforms can tap into this affluent segment.
While obstacles remain, the UK investment market is poised for growth, fuelled by innovation, new regulations and an improving economic outlook.
Charlie Landsborough, Financial Services Analyst
For the purposes of this Report, Mintel has used the following definitions:
This Report examines the retail investment market, with a particular focus on investment funds (mainly unit trusts and OEICs). The majority of these funds are available to individual investors (referred to as ‘retail investors’) through fund platforms, advisers or directly from investment firms.
Other common types of investment bought and held by retail investors include individual company shares, investment trusts, exchange traded funds (low-cost, passively managed tracker funds), corporate bonds, government bonds (or ‘gilts’) and life insurance bonds (eg with profits or unit-linked investment policies).
All FCA-regulated investments can be held inside a stocks and shares ISA, making them exempt from income and capital gains tax. They can also be held in a general investment account. Unlike with an ISA, there is no limit on how much an individual can invest in a GIA each year. Hence, they are useful for people who have used up their ISA allowance (£20,000 in 2023/24) and have more to invest.
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