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08 Feb 2021 | 11:46

Almost half of UK investors increase investment expenditure during pandemic

(Sharecast News) - Around 39% of UK investors dramatically reduced their monthly spending in order to increase investments and savings throughout the Covid-19 pandemic, revealed the latest data from brokerage firm ITI Capital. In a press release that contained the result of a poll of 2,000 UK investors, the firm said that 4 in 10 investors would rather invest money in certain assets, than hold it in cash due to poor interest rates during the crisis.

Additionally, 35% admitted that if banking interest rates were cut any more (or negative rates introduced), they will invest most of their fiat currency in preferred assets.

Traditional investment asset classes were favoured by the respondents, as only 24% revealed that they are exploring cryptocurrency as an alternative investment option as it has not been negatively impacted by Covid-19.

Furthermore, just 26% agreed that they are more willing to try new investment products and take more risks over the next 12 months. These results were expected after the restrictions from the FCA on Retail clients being able to invest in cryptocurrency assets.

42% of respondents said they would continue to invest in ISAs and pensions despite the turmoil caused by the pandemic.

Around 36% of investors have had to dip into their savings to stay afloat during the crisis.

Regarding investors expectations, around 40% of investors anticipate a market 'bull run' in 2021 if the Covid-19 situation dramatically improves, another 35% said that they are expecting a house price crash, worse than 2008 to occur in 2021.

Rahul Agarwal, Managing Director of ITI Capital, said: "Whilst the economic turmoil and market volatility caused by Covid-19 has been far from desirable, to say the least, the pandemic has admittedly birthed some remarkable opportunities for keen-eyed investors.

"Scouting these opportunities requires investors to be extremely vigilant and safe, else they risk losing large amounts of capital to turbulent markets."
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