Investors taken aback by intricate wealth management instruments
A recent survey has revealed that a significant number of investors in the UK are seeking more control over their investment portfolios, with many feeling that the current wealth management tools available are not meeting their needs.
According to the survey, 58% of investors want knowledge of stocks and shares previous performances for guidance, and 80% believe the ability to personalize their investment portfolio is essential to meet their individual goals and risk appetite. However, many investors feel investing is too risky due to lacking the knowledge needed to make informed decisions, with six in 10 UK investors feeling they don't have a strong enough financial understanding to manage investments.
Daniel Gold, CEO and founder of Stratiphy, a wealth management and financial innovation platform, stated that investors are dissatisfied with existing wealth management tools due to limited control and flexibility. He went on to say that there is a growing demand for greater insights into the performance of the stock market among investors.
This desire for control and transparency is not surprising, given the current market volatility. Many active investors are seeking more control over their investment portfolios due to this volatility, with some turning to DIY investment platforms to gain more control over their investments.
However, the UK's investment landscape is not without its challenges. The UK government's Trade Strategy document highlights that leaving the EU introduced "similar barriers to trade with the EU to those previously tackled only in non-EU trade," which affect small and medium-sized enterprises (SMEs) disproportionately and limit their growth potential. The strategy underscores that despite these challenges, the UK government is committed to mitigating barriers through improved UK-EU relations and trade agreements.
Rachel Reeves, a prominent figure in UK politics, recently spoke at the Mansion House and included plans to increase the number of people actively investing in the stock market. However, her speech also highlighted the economic and trade uncertainties affecting investor confidence, with increased costs and complexities in trading with the EU post-Brexit being a significant concern.
Two thirds of UK investors believe not enough people invest due to being unable to use complicated wealth management tools, with half of people who want help investing feeling dissatisfied with traditional wealth management tools. The global markets have faced struggles since the announcement of US tariffs in April, causing economic uncertainties and increased costs.
In summary, the primary barriers to investing in the UK include increased complexity and cost of trading with the EU post-Brexit, difficulties in the recognition of professional qualifications affecting services sectors, increased regulatory and paperwork burdens deterring smaller exporters, and economic concerns including wider budget deficit, inflation, and potential policy risks that may deter investment. However, despite these challenges, there is a growing demand for greater control and transparency in the investment process, with many investors seeking out new and innovative wealth management platforms to meet their needs.
[1] UK Government. (2021). UK Trade Strategy. [online] Available at: https://www.gov.uk/government/publications/uk-trade-strategy [Accessed 15 March 2023].
[2] Stratiphy. (2021). About Us. [online] Available at: https://stratiphy.com/about-us [Accessed 15 March 2023].
[3] UK Government. (2021). Economic and Fiscal Outlook – Spring 2021. [online] Available at: https://www.gov.uk/government/publications/spring-budget-2021-documents/spring-budget-2021 [Accessed 15 March 2023].
- Many UK investors are turning to new and innovative wealth management platforms, like Stratiphy, in search of increased control and transparency over their investment portfolios.
- The survey found that a majority of investors are seeking tools that provide knowledge of stocks and shares performances, as well as the ability to personalize their investment portfolios to meet their individual goals and risk appetite.
- Despite the challenges faced in the UK's investment landscape, such as increased complexity and cost of trading with the EU post-Brexit, increased regulatory and paperwork burdens, and economic concerns like wider budget deficit and inflation, there is a growing demand for investing, due to the perceived potential for wealth growth.
- The desire for greater control over investments is not limited to the UK, as indicated by the survey results, with 58% of investors wanting knowledge of stocks and shares previous performances for guidance, and 80% believing the ability to personalize their investment portfolio is essential to meet their individual goals and risk appetite.
