More than half of younger UK DIY investors took advantage of market volatility triggered by the Middle East conflict by buying into falling markets, while older investors were more likely to hold their positions, according to research from Charles Stanley Direct.

The survey found that 57% of millennials and 54% of Gen Z investors adjusted their portfolios to capitalise on market declines, compared with just 26% of Baby Boomers. Conversely, 60% of Baby Boomers said they stayed the course during the period, compared with 54% of millennials and 53% of Gen Z investors.

Despite the willingness of younger investors to buy the dip, geopolitical uncertainty made many investors more cautious. Overall, 41% of DIY investors said the conflict had made them more risk averse, while 45% focused more on building cash savings than investing.

Market volatility also increased demand for professional guidance. Around 31% of DIY investors sought financial advice about their portfolios following the conflict, rising to 44% among millennials.

More than half (52%) of investors already using an independent financial adviser (IFA) sought additional support, compared with 37% of former IFA users and 17% of those who had never used one.

The findings are based on a Censuswide survey of 1,000 UK DIY investors conducted between 26 June and 6 July.

Rob Morgan, chief investment analyst at Charles Stanley Direct, part of wealth management firm Raymond James, said the market is seeing a "clear distinction in how different generations navigate market turbulence".

Morgan said: "Younger investors are taking a far more proactive approach to their portfolios. The data suggests that they see market volatility as an entry point, actively buying the dip while wisely leaning on professional guidance to help navigate the noise.

"It’s encouraging to see that despite pressures, panic amongst investors is low and long-term commitment to rebalancing portfolios remains strong."

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