More than one in 10 (11 per cent) self-directed investors plan to take a “very high” level of risk in the next three months, research from Charles Stanley Direct found.
The survey of 1,000 DIY investors, also found 23 per cent intend on taking a high level of risk and 43 per cent a moderate level of risk.
At the other end of the spectrum, just 19 per cent of respondents wanted a low-risk strategy and 4 per cent said they would take no risk.
Charles Stanley Direct chief investment analyst, Rob Morgan, said: “The UK has a thriving network of DIY investors – people who are proud to make their own investment decisions and turn their financial ambitions into reality.
“Those investors are currently recovering from a tough few years, full economic uncertainty, political turmoil, and market volatility.
“Now the future looks bright, with expectations for higher growth, lower interest rates, and something that looks suspiciously like stability.
“Younger investors, and investors that take financial advice, are driving forces of optimism, and rightly so. Those who can afford to take on higher risk at the moment are likely to be well rewarded.”
The research also found age plays a “critical” role in investment strategy, with Generation Z being the most open to an adventurous approach to risk.
It said 61 per cent of these younger investors, born between 1997 and 2012, plan to take a “high risk” approach compared to 39 per cent of millennials.
In comparison, 51 per cent of baby boomers are seeking a low level of risk or no risk at all in the next three months, and only 9 per cent seeking high risk.
Much of this risk appetite can be attributed to optimistic expectations of the stock market as 71 per cent of respondents believe the FTSE will rise in the next 6 months and mat be looking to capitalise on those returns.
On the other hand, a minority of 10 per cent believe that FTSE will fall in the second half of the year.
This confidence is driven by younger investors as 80 per cent of Gen Z believe the FTSE will rise, followed by 77 per cent of millennials.
This falls to 64 per cent of generation X, and the same of baby boomers.
tom.dunstan@ft.com
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