One third of UK retail investors (33%) are more inclined to look beyond traditional investment assets amid concerns over the government’s economic policy, a new study has indicated.

Research by Shojin also found that three in ten (30%) investors said that given the UK seems poised for a lengthy recession, it is leading them to consider alternative investment assets.

The FCA-regulated investment platform commissioned an independent survey among 721 UK adults, all of which have investment portfolios worth in excess of £10,000 – which includes all forms of investments but discounts their savings, pensions and property used as a primary residency.

While Shojin found that 33% of respondents are looking beyond traditional investment strategies due to concerns over the government’s handling of the economy, the figure climbs to 59% for investors aged between 18 and 34.

Shojin CEO, Jatin Ondhia, said: “It has been a bumpy ride to stability across financial markets. Economic volatility has become turbulence and markets are now braced for a lengthy recession, with our research showing there is a notable demand among investors for asset classes that can offer their portfolios resilience and the potential for higher returns.

“While alternative investment strategies have been steadily gaining traction in recent years, our research shows there is a renewed emphasis on diversification strategies motivated by concerns over inflation, interest rates, recession and the government’s economic policy. This is likely to accelerate alternatives’ move into the mainstream.”
 
Despite the appeal of alternative investments among many investors, Shojin’s study also highlighted there is a major barrier, with three in every five investors (60%) finding it challenging to determine the best way to gain access to alternative asset classes.

“The research also revealed there is a significant knowledge gap among investors, which is impacting their exposure to alternative asset classes,” Ondhia added.

“As ever, investors will need to conduct thorough due diligence, consider their risk appetite, weigh up their strategies and choose investment partners carefully to ensure their portfolio aligns with their investment goals, particularly in the current climate.”

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