Investors fear they will be worse off as a result of COVID-19

FJP Investment has commissioned an independent survey of more than 850 UK-based investors to uncover how COVID-19 has affected their financial strategies.

Almost two-fifths of investors fear they will be financially worse-off by the end of 2020 as a result of the COVID-19 pandemic, new research from FJP Investment has found.

The investment firm commissioned an independent survey of more than 850 UK investors, all of whom have investments in excess of £10,000, excluding property, pensions, savings or SIPPs.

It found that 38% of investors feared they will be in a worse-off financial position by the end of the year. This compares to 29% who think they will end the year in a stronger position, with the remaining 33% unsure how they will be financially affected.

With interest rates at an historic low of 0.10%, just under half (44%) of investors are looking for new investment opportunities to deliver better returns. This figure rises to 56% for those aged between 18 and 35.

Looking to the future, 32% are confident the financial market will recover quickly once the COVID-19 pandemic is contained. Over a quarter (27%) of investors plan on purchasing stocks and shares that have dropped in market value.

More than two in five (42%) investors are satisfied with the way the UK Government has handled the outbreak. Conversely, 31% said they were dissatisfied, with 27% neutral on the matter.

Elsewhere, FJP Investment’s research also revealed a third (33%) of investors are more concerned by the long-term impact Brexit will have on their investments as opposed to COVID-19.

Jamie Johnson, CEO of FJP Investment, said: “Investors are clearly concerned by the immediate impact COVID-19 is having on their investments and savings. Fluctuating financial markets and record-low interest rates are pushing and pulling investors in different directions, forcing them to reconsider their strategies.

“Interestingly, though, the long-term outlook is generally positive. Many investors are confident the market will bounce back once COVID-19 has been resolved, with some looking to take advantage of undervalued assets such as stocks and shares which are likely to recover in price.

“What’s more, while talk of Brexit may have largely subsided for now, it is evidently still playing on the minds of investors. The process of negotiating a withdrawal from the EU will be of immense importance for the UK and should not be overlooked in the months ahead.”