UK investors are increasing the amount of money they put into their portfolios, with contributions rising 47% in the second quarter of the year.
According to data from the Scottish Widows Investment Pulse, average portfolio contributions reached £3,554 between April and June, up from £2,413 from January to March.
Just under half of UK investors (48%) reported positive returns in the second quarter, down from 50% in the first.
The number of investors increasing contributions in the second quarter (26%) was down slightly from the 30% recorded in the previous one.
UK investment exposure remained the largest single allocation at an average of 57%, but down from 62% in in the first quarter. A net 31% said their UK exposure has increased over the past three months. Money was shifted into North America, which rose to 21% from 16%.
In terms of investment themes, AI was the most popular choice at 35% of investors, followed by renewable and clean energy infrastructure (25%).
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Safe-haven assets like gold were mentioned by 17% and healthcare or biotech also by 17%. Nearly a quarter (23%) said no themes or sectors interested them.
At the same time, the number of people who said they invested less than usual has gone up from 19% to 23% since the last quarter.
Scottish Widows said cost of living and personal finances remained the biggest factors driving decision-making, but there was a ‘sharp rise in influence’ from geopolitical conflict against the backdrop of the war in the Middle East.
Manuel Pardavila-Gonzalez, managing director of investments at Scottish Widows, said: “Investors have shown real resilience this quarter, increasing their contributions even as global conflict has escalated and the UK political landscape has shifted expectations.
“There’s a clear sense that investors are remaining level-headed. Even as the cost of living continues to bite, most aren’t reacting to short-term noise or alarmist headlines – they’re staying the course rather than making knee-jerk decisions.
“While we’re expecting more of the same uncertainty in the next quarter, the principles of investing remain the same and it’s important not to let short-term volatility derail long-term plans.”
