Risk appetite among advised DIY investors peaks amid Middle East conflict

More than a quarter (27%) of self-directed investors – also dubbed DIY investors, in that they actively choose their own investments – are looking to take a high level of risk in the next few months, according to new research from Charles Stanley Direct. 

This comes following the recent conflict in the Middle East, which has caused considerable volatility in the market, disrupting oil and energy prices, airlines and global supply chains, among others.

While there has been evident disruption in financial markets, investors are looking for opportunities to take advantage of for the long term. The research, which looked into what investors’ risk appetites are, found that while 27% of investors are seeking a high investment risk level, those who currently receive financial advice are looking higher still. Nearly half (45%) of advised DIY investors are looking to take on a high level of investment risk in the months ahead.

Going on to ask DIY investors if their risk appetite is higher than usual, 42% say it is higher, while 43% say their level of risk taking has stayed the same. Among those who currently receive financial advice, however, 62% say their risk level for the next few months is higher than usual, with 28% saying it has stayed the same. 

Rob Morgan, Chief Investment Analyst at Charles Stanley Direct, comments: “Investment risk can be personal and complex to navigate. Based on individual circumstances, from someone’s age, financial responsibilities and commitments, to what they want to achieve in life, appetite towards risk can fluctuate. When markets are volatile, this also puts risk appetites to the test.

“What’s clear from recent geopolitical events is that investors have not shied away, particularly for those who receive financial advice, and are riding the market storm. With all investment decisions, it’s crucial to be as informed as possible before making any adjustments to portfolios. Whether taking advice or not, capital is at risk with investments and investors must be thinking about the long term when making certain choices. Evidently though, investors who are receiving advice are feeling confident and prepared to take on the risk to reap any rewards.”