Professional Investors Believe Fixed Income will Become more Attractive than Equities Over the Next 12 Months
One in four UK adults consider themselves stock market investors
New research from Managing Partners Group (MPG) reveals professional investors believe fixed income will become more attractive than equities over the next 12 months. More than six out of ten (62%) stock market investors plan to increase the amount they trade this year as interest in share trading continues to grow, new research from GraniteShares shows.
Its study found one in four UK adults consider themselves stock market investors and of these, one in seven (14%) say they trade at least once a day.
People aged between 25 and 34 years old are most likely to be investors with 35% of that age group trading.
How are Investors Feeling about Fixed Income? (%)
94 questioned in the global study of institutional investors and wealth managers said fixed income is more attractive. 17% said it is becoming significantly more attractive.
A bond rally is very likely in the next 12 months20
A bond rally is quite likely in the next 12 months
79
A bond rally is very likely over the next 24 months
42
A bond rally is quite likely over the next 24 months
57
Another 14% say they trade several times a week, while 25% estimate they buy and sell shares several times a month, with the rest of the investors trading less often, the research for GraniteShares, which offers a range of exchange traded products (ETPs) listed in London, shows.
Nearly one in three (32%) estimate they are trading £500 a month or more on stock markets with most (64%) saying they mainly trade shares. However, around a fifth (22%) mainly trade in investment funds, while 14% say they are using ETFs.
The peak time for trading is in the evening - 77% of investors do some of their trading then, but investors trade at all times, the study found.
Around 44% say they do some trading before they go to work, with 42% admitting they sometimes trade while at work and 50% do some trading late at night. Around 60% claim to occasionally trade at the weekend.
The majority (53%) are making money from their trading, with 44% estimating they made around £3,000 last year, with another 24% saying they made between £3,000 and £10,000 from trading.
GraniteShares research indicates a growing interest in share trading, with over six out of ten stock market investors planning to increase their trading activity in the coming year
However, around 15% admitted to losing money on their trading, while 24% say they broke even, with the rest either not knowing or preferring not to say whether they gained or lost on trading.
Among those who lost money trading, 41% estimated they lost up to £3,000 during the year and another 15% said they lost between £3,000 and £10,000. Around 36% would not say how much they lost or did not know.
Exploring Stock Market Engagement Among UK Adults
53%Making
Money
44% around £3,000 last year
24% between £3,000 and £10,000
24% between £3,000 and £10,000
15%Losing
Money
41% Up to £3,000
15% Between £3,000 and £10,000
36% Would not say or did not know
15% Between £3,000 and £10,000
36% Would not say or did not know
MPG is a multi-disciplined investment house that specialises in the creation, management and administration of regulated mutual funds and issuers of asset-backed securities for SMEs, financial institutions, and sophisticated investors. It currently manages two funds with a combined gross value of $500m.