UK investors paid more into their portfolios during the second quarter than in the first three months of 2026 despite ongoing market uncertainty, according to new data from Scottish Widows.
Average portfolio contributions rose by 47%, reaching £3,554 between April and June, up from £2,413 from January to March. Just under half (48%) reported positive returns this quarter, down marginally from 50% at the start of the year.
The latest Scottish Widows Investment Pulse surveyed 2,000 non-advised UK retail investors on their confidence, outlook, motivations and plans for the months ahead.
Investor activity shifts in second quarter
The number of investors increasing contributions in Q2 (26%) was down slightly from the 30% recorded in Q1. At the same time, the number of people who said they invested less than usual has gone up from 19% to 23% since the last quarter.
A quarter (26%) made no or very limited changes to their portfolios in Q2, while others opted to:
- 13% – Move some investments into cash
- 12% – Sell some investments
- 12% – Invest more in individual shares
- 9% – Invest more in cryptocurrency
- 8% – Invest more in gold
Cost of living and personal finances remain the biggest factors driving decision-making, but a sharp rise in influence from geopolitical conflict shows global events are increasingly weighing on these investors’ minds:
| Factors influencing investment decisions (Q1 vs Q2) | Influence | No influence |
| Cost of living/household expenses | 81% (↑10%) | 19% (↓10%) |
| Change in personal financial circumstances | 73% (↑7%) | 27% (↓7%) |
| Inflation | 72% (↑9%) | 28% (↓9%) |
| UK political uncertainty | 63% (New in Q2) | 37% (New in Q2) |
| Geopolitical conflict | 60% (↑15%) | 40% (↓15%) |
| UK fiscal policy/budget | 59% (↑10%) | 41% (↓10%) |
| Bank of England base rate | 56% (↑6%) | 44% (↓6%) |
Looking ahead: positive outlook for Q3
Looking ahead, more than four in 10 (44%) expect their portfolios to perform well in Q3 – continuing the positive sentiment recorded ahead of Q2. Nearly one in four (24%) will increase the amount they invest over the next three months, down from 30% in Q1 but still reflecting stable confidence levels. These investors plan to contribute an average of £3,579, with just 16% planning to reduce contributions.
The leading factors driving their decisions remain broadly consistent with Q1, with a desire to build long-term wealth (43%, vs 44% in Q1) and a feeling that it is a ‘good time to invest’ (28%, vs 29% in Q1) continuing to top the list. More than one in five (21%) are now driven by having more spare money than usual, while others are still making use of their ISA allowance and tax benefits (19%).
Nearly four in ten investors (39%) say the cost of living and inflation are their top concerns for the future. Political uncertainty (29%) and geopolitical conflict (28%) follow close behind, with stock market volatility (26%) and recession risk (25%) also weighing on minds. Around one in six (17%) say recent volatility hasn’t affected their behaviour at all, and 17% continued investing as normal.
UK holdings still dominate, but allocations are shifting abroad
UK-held investments remain the largest single allocation, though this has eased to 57% (down from 62% in Q1), with North America picking up ground at 21% (up from 16%). A net 31% say their UK exposure has increased over the past three months, while individual shares remain in favour too, with 28% increasing their exposure here.
In terms of investment themes, AI is the most popular choice (35%), followed by renewable and clean energy infrastructure (25%). While nearly a quarter (23%) said no themes or sectors interested them, safe-haven assets like gold (17%) and healthcare/biotech (17%) were top areas of interest.
“Investors have shown real resilience this quarter, increasing their contributions even as global conflict has escalated and the UK political landscape has shifted expectations.
“There’s a clear sense that investors are remaining level-headed. Even as the cost of living continues to bite, most aren’t reacting to short-term noise or alarmist headlines – they’re staying the course rather than making knee-jerk decisions.
“While we’re expecting more of the same uncertainty in the next quarter, the principles of investing remain the same and it’s important not to let short-term volatility derail long-term plans.”
Manuel Pardavila-Gonzalez, Managing Director of Investments at Scottish Widows
