London and the Home Counties are the investment capitals of the UK. Those in the north of England, Midlands, Scotland and Wales are less likely to invest, while residents of Elmbridge in Surrey are almost twice as likely to invest as those of East Ayrshire in Scotland.
Victoria Hasler, head of fund research, Hargreaves Lansdown, said:
“London and the Home Counties are the investment capitals of the UK, and the North/South divide is in full effect when it comes to investment. Data from HL’s Savings and Resilience Barometer shows that while over half of adults in Elmbridge in Surrey invest, only just over a quarter of those living in East Ayrshire in Scotland do so.
Those most likely to invest live in Elmbridge in Surrey (50.9% of adults invest), Mole Valley in Surrey (49.9%) and St Albans in Hertfordshire (49.8%).It comes as no surprise that London and the South East dominate the areas where a higher proportion of people invest, given the fact that there tend to be more people in these areas on higher incomes and with more wealth. People with greater wealth tend, on the whole, to be more willing to take risk with at least a portion of their money in pursuit of higher returns. They are also more likely to have built sufficient savings that they appreciate investment makes sense for their circumstances.
At the other end of the scale, the areas with the lowest proportion of investors include towns in areas such as the Midlands, north of England, Scotland and Wales. Those least likely to invest live in East Ayrshire in Scotland (26.7%), North Lanarkshire in Scotland (27.7%) and Sandwell in the West Midlands (28.0%).
If you have nothing left over at the end of the month and no emergency savings, then you probably shouldn’t be trying to invest. But it shouldn’t be assumed that investing is reserved for the wealthy. If you have any cash left at the end of the month, you can consider putting it away for the future in a number of ways. Often people will save some, put some into a pension and invest some. You don’t need a lot of money to invest, you can start with a direct debit of as little as £25 a month, paid into an ISA, and over time you’ll really see the benefits as your capital grows.
If you want to start building a portfolio, here are some funds to consider:
BNY Multi Asset Balanced fund
The golden rule for starting a portfolio is diversification, so a multi-asset fund could be a good first choice especially if you’re not sure where to invest and want to spread your investments over different areas without having to make complicated decisions yourself. The BNY Multi Asset Balanced fund focuses on companies from across the globe and uses some bonds and cash for diversification. The fund’s managed by Simon Nichols who’s built a strong track record in multi-asset investing. Most of the fund invests in shares, and Nichols favours established companies that often pay a dividend. He likes companies that pay a dividend because of the discipline this puts on company management. The rest of the fund is made up of bonds and cash which act as a diversifier when stock markets fall in value. Note this fund has the flexibility to invest in emerging markets, smaller companies, high yield bonds and derivatives, which add risk if used.
Troy Trojan
It’s not uncommon to feel slightly nervous about the prospect of investing, so a total return fund, like Troy Trojan, is a more conservative starting point. This type of fund aims to limit the chances of big losses when stock markets fall. It might not grow as quickly when markets rise, but that’s exactly the point. Rather than trying to keep up with every sharp move up in the market, the managers aim to grow investors’ money steadily over time, while limiting losses when markets fall. This could reduce volatility compared to the stock market – it’s designed to smooth the bumps. It does this through investing in a mix of shares, bonds, gold and cash. The fund has the flexibility to invest in higher-risk smaller companies and while the fund contains a diverse range of investments, it’s concentrated, which is a higher-risk approach.
Rathbone Global Opportunities
If you can afford to take a little more risk, a global equity fund such as Rathbone Global Opportunities could be worth a closer look. Importantly diversification still applies here, as the manager invests in different countries and sectors. James Thomson, the fund’s manager, views the world a little differently. He looks for businesses that can grow to dominate their industry and defend themselves from competition. He’ll also search off the beaten track to find companies with superb potential that might be overlooked by other investors. The manager has the ability to invest in smaller companies and emerging markets and, while he doesn’t tend to invest in these areas, they would add risk.”
HL data
| Top 20 Areas | Percentage of investors |
| Elmbridge | 50.9% |
| Mole Valley | 49.9% |
| St Albans | 49.8% |
| Epsom And Ewell | 49.7% |
| Waverley | 49.4% |
| Wokingham | 49.4% |
| Guildford | 48.5% |
| Tandridge | 48.3% |
| Windsor And Maidenhead | 47.9% |
| Surrey Heath | 47.9% |
| Hart | 47.9% |
| Three Rivers | 47.6% |
| South Oxfordshire | 47.4% |
| Richmond Upon Thames | 47.0% |
| Uttlesford | 46.9% |
| Wandsworth | 46.9% |
| Reigate And Banstead | 46.9% |
| South Cambridgeshire | 46.8% |
| Sevenoaks | 46.7% |
| City Of London | 46.7% |
| Bottom 20 Areas | Percentage of investors |
| East Ayrshire | 26.7% |
| North Lanarkshire | 27.7% |
| Sandwell | 28.0% |
| Stoke-On-Trent | 28.0% |
| West Dunbartonshire | 28.2% |
| North Ayrshire | 28.5% |
| Blackpool | 29.0% |
| Wolverhampton | 29.1% |
| Kingston Upon Hull, City Of | 29.1% |
| Leicester | 29.4% |
| Inverclyde | 29.5% |
| Walsall | 29.6% |
| Blaenau Gwent | 29.7% |
| Burnley | 29.8% |
| Merthyr Tydfil | 30.1% |
| Hyndburn | 30.3% |
| Dundee City | 30.3% |
| Nottingham | 30.5% |
| Glasgow City | 30.7% |
| Falkirk | 30.9% |
Source: HL Savings and Resilience Barometer
