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4.4 million regular savers put off investing due to fund confusion

  • More than one in three regular savers put off investing in the past because there are too many funds to choose from
  • 31.1% of investors say they would prefer a choice of less than 50 funds
  • Two-thirds of investors say a guarantee to at least get back the money they invest into a fund is more important than maximising returns

More than 4.4 million regular savers have been put off investing because they find it hard to choose from the thousands of funds on offer, new research from Scottish Friendly reveals. 

The data shows that more than one in three (37.5%) UK adults who regularly save £100 a month say they find the number of funds available confusing and that this has stopped them from investing in the past. 

Nearly a third (31.1%) of investors would prefer a choice of fewer than 50 funds, according to the research, which is far fewer than the 2,000 plus funds available in the wider market. 

The findings highlight how large swatches of the population are put off by the complexity of the investment industry.

Scottish Friendly's research also highlights how risk adverse investors are in the current climate. 

Two-thirds (65%) of those surveyed say that having a guarantee that they would get their money back is more important to them than maximising returns. 

Kevin Brown, savings specialist at Scottish Friendly, said:

Many potential investors are telling us that too much choice can be off putting and confusing. There are thousands of funds on offer to UK investors at the moment, so it's no surprise so many people feel confused. At the end of the day, how is someone who is new to investing meant to wade through all these choices and put together their own portfolio?

We don't want to put potential investors off. That's why our focus is on making investing straightforward and accessible to everyone. In the current climate, people are looking for alternatives for their cash and investing in an ISA could be one way to help towards securing a prosperous future for you and your family.

With all stock market investment, your investment can go down as well as up, so you could get back less than you invested. 



Our consumer survey was conducted by OnePoll between 04/02/19 and 08/02/19. The total sample size was 2,000 UK adults who save at least £100 a month. The sample is nationally representative by age, region and gender. 

*Number of people put off investing - 37.5% x 12.45 million (adults aged 18 and over who save £100 or more each month). Source: United Kingdom Household Longitudinal Study (UK Data Service)



Chris Tuite, Director and Head of Consumer Finance, MRM

020 3326 9925 / 07471 350 810

Paul Thomas, Consultant, MRM

020 3326 9904 / 07884 667 981

Kevin Brown, Savings Specialist, Scottish Friendly

0141 275 5121 / 07512 194 336


Editors Notes: 

About Scottish Friendly: 

Scottish Friendly is a leading UK mutual life and investments organisation. It provides investors and their families with a wide range of investment and protection solutions and provides life and investment products and services to other financial organisations. 

Scottish Friendly has roots stretching back to 1862. Established as the City of Glasgow Friendly Society, its name changed in October 1992 when it took over Scottish Friendly Assurance. 

Scottish Friendly's overall strategy is well-establisged and is based on a three-part growth plan composed of organic growth, business process outsourcing, and mergers and acquisitions. 

Scottish Friendly, Scottish Friendly House, 16 Blythswood Square, Glasgow, G2 4HU

Scottish Friendly Assurance Society Limited. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority.

Scottish Friendly Asset Managers Limited. Authorised and regulated by the Financial Conduct Authority. 


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