The majority (92%) of advisers believe investment markets will be more volatile in 2026, research by Wesleyan Financial Services has found.

The mutual’s survey of 300 UK-based financial advisers revealed that 68% said uncertainty over the global economy will feed this market volatility, along with the rate of UK inflation (61%) and Bank of England interest rate decisions (50%).

Furthermore, 42% of advisers believe intensified or enduring global conflicts will also contribute to market volatility, while 39% stated that a fall in global technology equities, including AI companies, will have an impact.

It comes as 82% think that the Government’s push to build a stronger culture of retail investing in the UK will make client concerns around market volatility a bigger issue.

Investment specialist at Wesleyan Financial Services, James Tothill, stated: "Market volatility is set to be a defining concern for clients in 2026, and with the Government encouraging more people to invest, advisers will potentially need to help a broader base of people to understand and navigate these conditions

"Beyond portfolio management, the key will be to help clients maintain their investment discipline and recognise that volatility comes with investing in growth assets."

The mutual’s research has revealed that advisers are deploying a range strategies to help their clients manage market volatility in 2026.

Wesleyan said the most common approach was client communication, with 60% of advisers planning to discuss what’s driving volatility, what the future outlook could be and what it means for their clients’ money and goals.

Almost half (48%) will seek further diversification opportunities, such as commodities or private equity. The same proportion said they will start or increase investments in a smoothed fund, which actuarially adjust for market volatility to smoot investment returns.

A further 41% said they would advise clients to de-invest from certain sectors or markets.

Tothill concluded: "We're seeing growing adviser interest in smoothed funds as a way to help specific client segments manage volatility without sacrificing long-term growth potential.

"Smoothing offers a way to stay invested in growth assets while avoiding the emotional and financial impact of short-term market swings, whether that's helping clients maintain discipline during uncertain periods or protecting those who simply can't afford to see significant portfolio fluctuations at critical points in their financial journey."

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