Only 7% of investors in Scotland choose the highest risk option to boost their savings according to findings from Zurich’s Wealth Risk Report.
This is half the proportion of investors in the North of England (14%) taking the highest risk option, followed closely by Londoners (13%). In contrast, those in the East and West are the most likely to play it safe, prepared to sacrifice growth on their savings in order to avoid losses.
The study, tracking investor wealth, attitudes and behaviour questioned consumers about their willingness to take risk and capacity to accept a loss on their investments. Four different investment types have emerged from the study, with the following regions showing the highest proportion of each type:
- Stags, opting for the highest risk option - Investors from the North (14%)
- Bulls, willing to take high risk – Investors from London and the East (29%)
- Owls, sticking to a low risk portfolio - Investors from Scotland, the West and the South East (61%)
- Squirrels, playing it safe - Investors from East and West (7%)
When looking at the regional distribution of investment wealth, unsurprisingly Londoners and those in the South East are wealthiest with average portfolios - including buy to let and second home investment properties - worth £196,000 and £192,000 - compared to £173,000 for the North – reflecting higher property values.
However, the picture shifts when investment property is excluded from the mix when investable wealth and average assets become highest in the north at £124,000 per head compared to £108,000 in London.
Commenting on the findings, Mark Peters, Zurich’s head of retail wealth propositions said:
“The findings that Scottish investors are less likely to take big risks while those investors living in the North are most likely to opt for the highest risk option are very interesting. While the overall picture of a strengthening economy and better employment prospects may boost investor confidence - it will be interesting to see if this translates into more people exploring riskier options in the hope of accelerating the growth of their portfolios."
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