Investors remain upbeat despite economic uncertainty

By Bridging Loan Directory 15th January 2019

Investors plan to increase the amount they invest this year despite challenging market conditions, according to recent research conducted by peer-to-peer investment platform Kuflink.

Although experts had forecast a downturn for year ahead in the wake of Brexit, this doesn’t appear to have deterred many investors. A survey of investors indicated that 91% plan to invest either the same amount (49%) or more (42%) during 2019.

The rise of online investment platforms has broadened public awareness of and access to higher returns on their money – it’s easier than ever to build and manage an investment portfolio, and as a result many mainstream savers are turning their backs on the big banks. 47% of investors have been investing less than two years, with just over a quarter (26%) revealing their primary reason for investing was to supplement their savings. Planning for retirement (24%) and to supplement income (21%) were the other common factors.

Lower minimum amounts have also proved attractive for new customers, with 40% of investors surveyed investing a relatively modest amount of between £1,000 and £10,000 a year, and preferring to commit funds on a monthly basis (48%) rather than in one lump sum.

Rate of return was by far the most popular factor respondents looked for when choosing how to invest (83%), with risk involved (68%) and company reputation (60%) also at the forefront of their financial decisions. The lender also found that customers were keen to stay with platforms that they had already seen results from, as 95% of Kuflink’s existing customers revealed plans to continue investing with them in the long-term.

“Thousands of people across the UK are waking up to the fact that they don’t have to leave their money to stagnate in a savings account, earning rates well below inflation and actually losing value.” Explained Narinder Khattoare, pictured, Kuflink CEO.

“Gone are the days when you needed to be a finance expert to earn decent returns on your money – now all you need is a computer, a few spare minutes to sign up and £100 first-time minimum investment.”

*Figures based on 452 responses, data collected December 2018.