Inflation is seen as the most significant risk to the performance of UK investors’ portfolios, according to research by RAW Capital Partners.

The investment firm's survey of 756 UK-based investors revealed that 89% of respondents said inflation presents a "high risk" or "moderate risk" to their portfolio.

Other risks included a slow economic recovery in the UK (88%) and geopolitical conflict, such as the wars in Ukraine and Gaza (87%).

RAW’s survey of these investors, all of whom have investments of more than £25,000 excluding the value of their residential property, savings and pension, listed high interest rates (82%) as a risk to their investments, while the US presidential election (81%) and climate change (79%) werealso considered to pose notable risk to their portfolios.

Interim managing director at RAW Capital Partners, Ben Nichols, said: "Globally, economies have been struggling with the impact of high inflation for some time, and the action that central banks like the Bank of England have taken to bring it down has made it extremely difficult for any meaningful economic growth. This has clearly taken its toll on investors, with inflation remaining a major risk in their eyes, while a slower-than-hoped economic recovery in the UK is evidently another concern.

"Perhaps more surprising is how highly many of the risk factors scored. Most analysts and economists now suggest that the global economy has turned a corner, but our research suggests there remains a broad and pervasive anxiety among investors towards the current and future state of the investment landscape.

"With this in mind, investors must recommit to implementing robust risk management strategies to protect their investments against any volatility that these risk factors could produce. This means constructing balanced and diversified portfolios that are resilient enough to weather economic uncertainties, thereby enabling investors to stay on track with their long-term investment objectives."

---