Alternative Investment

Record high inflation pushes UK investors into alternatives

As UK investors seek inflation-beating options, new research has revealed that half have either made alternative investments this year or are considering doing so by the end of 2023.

According to the online real estate investment platform Shojin, 18% of UK investors have made alternative investments in 2022, which includes assets such as private equity, commodities, real estate and infrastructure.

Meanwhile, the survey of 690 UK adults – all of which have investment portfolios worth in excess of £10,000 ($12,047, €11,850) – showed a further 32% are either considering making alternative investments within the next six months (17%) or in 2023 (15%).

With inflation hitting a 40-year high of 10.1% in August and the Bank of England expecting it to reach 13% in late 2022, Shojin’s study found that two in five (39%) investors are more likely to consider alternatives because of the high inflation environment.

“With inflation topping 9% and likely to rise further in the months to come, many investors are evidently weighing up their strategies carefully,” said Jatin Ondhia, chief executive of Shojin.

According to the research, the percentage of investors who have made alternative investment this year rises to 41% among those aged 18-34.

“This will be an interesting trend to monitor,” said Ondhia. “Indeed, investors of all shapes and sizes will currently be evaluating different assets, markets and methods of investing – many will be seeking options which might stand a better chance of delivering returns that can either keep pace with, or exceed, the rate of inflation.

“As ever, thorough research will be crucial so that investors make informed decisions to try meet their short-, medium- and long-term goals.”

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