UK private investors hold their nerve despite market uncertainty

• UK investors show patience in the face of market turbulence – 64% said they are taking a long-term view of their investments despite volatility
• However, 1 in 5 investors (22%) plan to get on the front foot by rebalancing their portfolios so that they are more resilient
• Increasing cash holdings (15%), bonds (13%) and equities (11%) are the most popular assets investors plan to buy to manage investment risk

Two-thirds (64%) of UK investors are taking a long-term view of their investments despite the recent market volatility according to new research¹ from J.P. Morgan-owned digital wealth manager, Nutmeg.

After weeks of headline-grabbing swings in global stock markets, the research finds that retail investors in the UK are taking a long-term view of their investments – especially investors with 10 or more years’ experience, where 72% seem unfazed by the short-term market movements. The survey of a thousand UK investors by Opinium further found that a majority (59%) of investors believe that that some volatility is inherent in investing.

While global markets² were down by 11% in the aftermath of ‘liberation day’ in April, they have now recovered and are up by 5% compared to before the tariffs were announced. As a result, those who held their nerve during the volatility may now find that their portfolios have regained significant ground. The research found that two thirds (69%) of investors said that they either don’t worry about short term market fluctuations or are willing to ride out any volatility.

Claire Exley, head of financial advice and guidance at J.P. Morgan owned digital wealth manager, Nutmeg, said: “Market volatility can be unsettling, yet it has become a more familiar part of the investment journey after several years of global uncertainty. Positively, our research shows that despite the recent market movements, UK investors are taking a patient and considered approach. While there can be a temptation to take action when markets fall, many investors who weathered the spring storms are likely to have seen their portfolios back where they were at the end of March.”

Investor response to market turbulence

Half (49%) of investors say they don’t plan to change their investment strategy in response to market volatility. This intention is reflected among Nutmeg investors, with less than 1.5% of existing Nutmeg investors changing their risk level in the 30-day period after ‘liberation day’.

Furthermore, a quarter (25%) of investors view the recent volatility and market fluctuations as a buying opportunity. This mindset is most prevalent (29%) among wealthier investors with over £100,000 in assets, but falls to less than one in five (19%) investors with smaller portfolios under £25,000.

Where investors are seeing an opportunity to rebalance their portfolio: 15% plan to increase their cash holdings, 13% plan to increase their bonds exposure and 8% are considering reducing their exposure to US equities.

The Nutmeg investment team has made a number of strategic changes to the managed portfolio ranges to remove some overweight exposure to global equity markets and reduce overall US equity exposure.

Pacome Breton, head of portfolio management at Nutmeg, said: “Tariffs continue to dominate the headlines and generate fast-paced movements across global financial markets. Just over a month into the 90-day tariff pause, it seems potentially premature to add more risky investments such as equities to portfolios. If investors do want to manage the resilience of their portfolios during periods of unpredictability, ensuring your investments are globally diverse – so that risk is spread across multiple sectors, industries, and markets – is often the first step in building a resilient portfolio.”

¹ Opinium survey of 1,000 UK investors undertaken on the 7^th to 14^th May 2025. Opinium Research is a member of the British Polling Council and abides by its rules.

² Figures are based on the FTSE All World index between the 2^nd April and 27^th May. The index fell to its lowest during the period on the 8^th April.