Our latest Consumer Insights report gives the big picture on consumer perception and attitudes to investing. We quantify the numbers of savers and investors and then drill down on active private investors and in particular DIY investors to understand financial objectives, preferred routes to market and attitudes to taking advice.
The following sections are featured in the report:
- Who are the savers and investors: Number of savers and investors, involvement in investments, goals and financial partners
- Active private investor insights: Channels used to take out investments, what investors value from the online experience, platform selection, brand recall and use
- DIY investor insights: Getting to know the audience, current behaviour, intended future behaviour
- Conclusions: why and how people invest; how many people invest and different categories of investor; preferred routes to market; appetite for advice and sources; factors that change investment behaviour
Findings include:
- There are more savers and investors, where savers are those with cash savings only and investors are those with risk-based investments, than at any time over the last five years (28.0 million). There are 1.9 million more investors with risk-based assets (14.2 million) than a year ago.
- Of those with risk-based assets, half take a blended approach to investing –relying on professional financial advice but also managing some of their investments themselves. One third of investors are entirely self-directed and the remaining one fifth are entirely advised.
- Investors tell us they prefer to buy directly from the provider (32%) followed by via platforms (31%). While buying direct from the provider and via a platform are on the rise, investors tell us they are less likely to buy through an financial adviser than in the past. And investors expect to use advisers less in future.
- Investors have some inclination to share investment experiences with family (49%) and friends (33%) but have little interest in sharing with colleagues (10%) or an online community (1%). 40% of investors don’t share their investment experiences with any of those groups and 83% say they are not interested in connecting with people with similar investment strategies to theirs. However, we think tomorrow’s investors will feel differently about sharing their investment experiences.
- The most important factors in selecting a home for investments are ‘a well known-and trustworthy company name’ and ‘a competitive price’. Whilst ‘the cheapest price’ is a low priority for investors, value is paramount. However this should not be seen as a call to raise fees. A high cost is the top reason DIY investors cite behind the decision to switch investment provider.
- Hargreaves Lansdown remains the most recognised direct platform brand followed by Nationwide, Halifax Share Dealing and Barclays Stockbrokers. Brand recognition of Interactive Investor, Nutmeg and AJ Bell Youinvest have increased in the past year.
Subscribers to Platforum research can access this report on our website. For details on subscribing please email enquiries@platforum.co.uk.