More than half (56%) of DIY investors increased their exposure to cash in the three-month period between February to April, Charles Stanley Direct has revealed.

The investment management company said that investors hadtaken action following market uncertainty around the impact of President Trump’s tariffs and the volatility which ensued.

These events saw a 10% increase from DIY investors increasing their cash holdings following the Autumn Budget last year, which stood at 46%.

The firm’s latest research also found that other alternative investments were also popular for DIY investors in this period amid the tariff-induced market activity.

Almost half (48%) of DIY investors increased their exposure to gold between February and April, while 46% increased their exposure to property.

Chief investment analyst at Charles Stanley Direct, Rob Morgan, said: "During times of uncertainty, keeping funds liquid or in lower risk investments can be beneficial to help weather a market storm. This holds true if we look at how Trump’s Liberation Day saw over £4trn wiped off the stock market overnight.

"While investors may have dashed for cash to find a temporary safe haven for their investments, it’s not generally something that holds as part of a long-term investment strategy. Fundamentally, in times of market volatility investors need to keep calm, stick to their investing plans, and keep focused on the fact that sharp short-term moves should pale into insignificance over multiple years and decades.

"Some may even look to capitalise on market turbulence. Through holding safe investments, such as cash or short-term bond funds, these can be quickly sold and reinvested into other areas at opportune moments.

"However, market timing is notoriously hard and tends to require luck as well as judgement. For an emergency fund and for any planned spending there is no alternative to cash. But those tempted to park large amounts of their ‘long term’ money in cash risk missing out over the longer term."

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