Brits grow confident about investing but increasingly cautious with their choices

Britons are growing more confident in investing, but are also becoming more cautious about where they put their money. An annual survey of 4,000 adults found that 39 per cent now feel confident investing, a rise from 33 per cent in 2024. Among those who have seen an increase in confidence, 40 per cent attribute it to understanding the basics of investing, while 35 per cent credit positive returns. The study was commissioned by savings and investment platform Moneybox as part of its annual Financial Confidence Index.

It discovered that despite gaining knowledge and experience as investors over time, 68 per cent opt for a cautious approach when it comes to their investment strategy. The research also revealed that so far this year, 23 per cent of investors have put more money into a Stocks and Shares ISA towards the end of the tax year, using up as much of their allowance as possible before it resets.

The study found a fifth increased their monthly investment contributions over the last year, while 14 per cent chose to diversify their investments to build a more resilient portfolio for the long term.

Meanwhile, 11 per cent of savers decided to move cash into investments this year in search of better long-term returns - a move that can be beneficial if done with an emergency fund already in place.

Brian Byrnes, head of personal finance at Moneybox, said: "It can feel unsettling to see the value of your investments fluctuate, especially when no one can predict exactly what comes next. But short-term market shocks are a normal part of investing, and history shows that markets recover from volatility over the long term.

"In fact, we've already seen this play out, with markets rebounding from the turbulence earlier this year when sweeping tariffs were introduced. "

He added: "The key is to focus on your time horizon and stay invested, rather than reacting to daily market noise. Even small, consistent steps, like contributing regularly or diversifying your portfolio, can make a real difference over time."

When it comes to long-term financial goals, 20 per cent of Gen Z and 26 per cent of Millennials aim to build an investment portfolio to grow their wealth over time.

These younger generations are also the most confident when it comes to investing - with 44 per cent of Gen Z and 47 per cent of Millennials saying they feel confident, according to the findings, conducted via OnePoll.

While younger generations are feeling more confident with investing, only 32 per cent of Gen X and 36 per cent of Baby Boomers say the same. This caution could be a reflection of older generations' experience of major market crashes, from the dot-com bubble to the 2008 financial crisis.

While younger investors may generally feel more confident, Gen Z are also more likely to feel overwhelmed by financial matters - with 19 per cent citing this as a concern, while 15 per cent are more worried about a market crash.

Brian added: "For anyone feeling unsure, start with what you can control, such as how long you are investing for and how consistently you contribute, build gradually, and use tools and guidance to make decisions that suit your goals and stage of life.

"It's not easy, but the more people focus on the long-term, the easier it will be to invest with confidence."