Cash savings remain most popular asset class, study finds

Cash savings continues to remain the most popular asset class among UK investors, new research commissioned by HYCM has found.

The findings revealed that the most common asset classes at present are cash savings (70%), followed by stocks & shares (40%), and property (38%).

A total of 975 UK-based investors, all of whom have investments in excess of £10,000, excluding the value of their residential property and workplace pensions, were surveyed on behalf of the trading broker.

Asked about their investment plans in 2021, 38% of investors said they will be putting more money into their savings account. Over a quarter (27%) indicated they will be buying more shares while 21% are looking to invest in property.

When it came to the least popular asset classes, HYCM found that only 21% of investors said they held cryptocurrencies, 20% in forex, and 19% in classic cars. However, 18% of investors said they would be investing in cryptocurrencies in 2021.

Overall, 39% of investors suggested the pandemic has “radically altered” their finance and investment strategy. However, HYCM’s study indicated that 72% are still confident in the way they are managing their finances and investments in the current climate, with 53% confident they will be in a stronger financial position following the pandemic.

HYCM chief currency analyst, Giles Coghlan, commented: “While there have been some small fluctuations, today’s results are very similar to the findings first uncovered at the beginning of the COVID-19 pandemic.

“While fiscal and monetary stimulus have been positively received by the market, investors are still treading carefully. This is why cash remains king, despite interest rates being at record lows.

“The big question now is what kind of assurances investors will need to look to beyond cash savings. Should the vaccine rollout and current lockdown successfully curb COVID-19 cases, I’d expect more investors to start moving some of their cash into other assets.”

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