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Investor confidence rockets to 50-month high
According to our recent survey, nearly two-thirds of UK investors expect the UK market to rise over the next year. Discover two ways to invest in this area.
Important notes
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
UK investor confidence has rocketed to its highest level since November 2015.
Based on our recent survey of HL investors, 63% expect the UK stock market to rise over the next year. Less than 2% of people said it was 'very unlikely'.
Please remember that all investments rise and fall in value, so you could get back less than you invest. This article isn’t personal advice, so if you’re unsure that an investment is right for you, seek advice.
HL investor confidence
Source: January 2020 HL investor confidence survey – 534 respondents.
The Conservatives' majority win in December's general election was a pivotal moment. Uncertainty is bad for investor confidence and for stock markets. For the first time in nine years the UK has a government with a large majority and clear mandate.
With the 'ISA season' about to kick off, this momentous shift in confidence could provide a great opportunity. There's still time to make the most of your ISA allowance before the 5 April deadline. Investments held in an ISA are sheltered from UK tax. And less tax means better returns. How much you benefit depends on your personal circumstances and tax rules can change.
Two ways to invest in the UK
There are lots of ways to invest in the future of the UK. The simplest is to invest in a tracker fund. Our favourite UK tracker fund is the Legal & General UK Index Fund. It aims to closely mirror the performance of the FTSE All-Share index, which covers nearly the entire UK stock market.
Its 0.04% ongoing charge is one of the lowest available. HL’s platform charge of up to 0.45% a year also applies.
| Annual percentage growth | |||||
|---|---|---|---|---|---|
| Dec 14 -
Dec 15 |
Dec 15 -
Dec 16 |
Dec 16 -
Dec 17 |
Dec 17 -
Dec 18 |
Dec 18 -
Dec 19 |
|
| Legal & General UK Index | 1.3% | 15.9% | 13.1% | -8.9% | 19.1% |
| FTSE All-Share | 1.0% | 16.8% | 13.1% | -9.5% | 19.2% |
Past performance is not a guide to the future. Source: Lipper IM to 31/12/2019
Find out more about Legal & General UK Index including charges
Legal & General UK Index Key Investor Information
An actively-managed way to invest in some of the UK’s best companies is the HL Select UK Growth Shares Fund. The managers target financially strong, high-quality businesses with excellent long-term growth potential. They have the flexibility to scour the market to find large, medium or higher-risk smaller companies. Only those they believe in most make the cut. They invest in around 30 companies. This means each one can make a real difference to returns, although it’s a higher-risk approach.
The fund celebrated its third anniversary in December and since it launched has returned 50.8%*, compared with the FTSE-All Share’s 28.6% rise and the IA UK All Companies’ 20.8% gain. Remember past performance isn’t a guide to future returns.
| Annual percentage growth | |||||
|---|---|---|---|---|---|
| Dec 14 -
Dec 15 |
Dec 15 -
Dec 16 |
Dec 16 -
Dec 17 |
Dec 17 -
Dec 18 |
Dec 18 -
Dec 19 |
|
| HL Select UK Growth Shares | n/a | n/a | 19.2% | -3.2% | 24.1% |
| FTSE All-Share | 1.0% | 16.8% | 13.1% | -9.5% | 19.2% |
| IA UK All Companies | 4.8% | 11.2% | 14.1% | -11.2% | 22.5% |
Past performance is not a guide to the future. Source: *Lipper IM to 31/12/2019
Where n/a is shown, no data is available.
Find out more about HL Select UK Growth Shares including charges
HL Select UK Growth Shares Key Investor Information
The HL Select UK Growth Shares Fund is managed by our sister company HL Fund Managers Ltd.
Open or top up your ISA today
The HL Stocks and Shares ISA helps people invest towards a better future.
- An easy way to invest free from UK tax
- Start with a lump sum of £100, or £25 per month
- Shelter up to £20,000 from tax before 5 April
Important notes
This article isn’t personal advice. If you’re not sure whether an investment is right for you please seek advice. If you choose to invest the value of your investment will rise and fall, so you could get back less than you put in.
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