Industry-backed campaign aims to boost UK’s investment culture

Andrew Prosser, head of investments at InvestEngine, said: “It’s good to finally see the launch of the long-awaited UK Retail Investment Campaign.

“This is a significant step towards the government’s ambition of building a nation of investors, and it’s encouraging to see industry coming together to raise awareness of the importance of investing for people’s long-term financial wellbeing.

“However, while awareness and confidence are key, this alone won’t be enough.

“Our research shows that two-thirds of already-existing investors don’t know what they’re paying in fees on their investments – despite low costs being their top priority.

“Given even small differences can add up to tens of thousands of pounds over time, millions are at risk of significantly eroding their long-term returns without realising it.

“If this campaign is to succeed, transparency and education around costs must be central to any efforts to boost people’s confidence in investing.

“Exchange-traded funds (ETFs) are one of the clearest solutions here.

“They are low-cost, diversified and accessible, but our data shows that over half (55 per cent) of people in the UK are unfamiliar with them.

“However, once given a clear explanation of what ETFs are, interest in investing doubles, highlighting the role clearer communication and education can play in helping more people engage with investing.

“This is backed up by investor sentiment; two thirds of current investors think the benefits of ETFs need to be better communicated and more than half believe the UK government should do more to promote them as part of efforts to strengthen the country’s investment culture.

“Empowering consumers with that knowledge will be essential to helping more people make informed decisions and achieve better long-term outcomes from their investments.”