- Green and community schemes most attractive to personal investors
- Personal investors want to use schemes that ‘do good’
The survey of 1,627 UK adults, carried out by Oaksmore ISA (an innovative, FCA-regulated Alternative Investment Fund Manager) asked potential investors where they would most like their funds to be directed.
The most popular responses were projects with green credentials (19%) such as green energy, and projects which benefit the community (also 19%).
This was greater than the number that would be attracted to schemes which invest in large private businesses (18%) or small and medium-sized business funds (16%).
The authors of the study suggest that connecting investors with positive impacts is an important way to motivate more people to make better use of their money.
Reuben Skelton at Oaksmore said: “Our study shows that, when it comes to putting their money to work to earn a return, many people aren’t particularly motivated to act. 41% would rather leave savings earning little or no interest in bank accounts than consider specific investments.
“There are two major hurdles to overcome in this regard. The first is making sure people feel comfortable with risk and the level of security (a requirement for 36% and 28% of our sample respectively). The second is to engage and motivate them to feel that their money is doing something worthwhile as well as growing their wealth.”
Reuben believes that Innovative Finance ISAs represent the best vehicle with which to deliver both of these requirements to everyday investors.
“The IF ISA model gives providers the flexibility to find schemes that deliver on these needs expressed by potential investors.
“For example, our own scheme (the Oaksmore ISA), allows people to invest in the renovation of heritage property, bringing beautiful old buildings back to use. This not only supports the country’s national heritage, but also delivers value back into communities by creating places to live and work.
“At the same time, investors appreciate the tangible nature of property investment and feel comfortable with the level of risk and security that property provides.”
However, when it comes to generosity, charity begins close to home. The survey reveals that investors would particularly like to see projects that support schemes in their own area.
“This is understandable,” continues Reuben. “It’s easier to visualise the impact (and assess the risk) in an area we know well. This underlines the true motivations of such investors who want to feel more personally connected to their investments.”
Oaksmore Portfolios AIFM Limited act as an Alternative Investment Fund Manager under the Alternative Investment Fund Managers Directive and is authorised and regulated by the Financial Conduct Authority (FCA).
More details about the Oaksmore ISA can be found online at https://oaksmore-isa.co.uk