Inflation is the biggest investment concern for nearly a fifth of IFA clients, according to a poll* of advisers undertaken by M&G Investments.
Of the 882 advisers who responded to the M&G survey over several weeks in May, about 16% cited rising prices and inflation as the main worry for their clients.
Unsurprisingly, capital losses on turbulent equity markets were the main fear for most clients, with just over 50% of advisers surveyed ranking this first. Around 20% of respondents cited a drop in income as the greatest concern for their clients.
The poll also revealed that the introduction of the 50% income tax band for high-earners has had next to no impact on clients' investment strategy with fewer than one in 10 IFAs stating that this had any influence on investment thinking.
Fewer than 30% of IFAs said they planned to outsource their investment decisions to discretionary managers.
Jonathan Willcocks, Managing Director, Global Head of Retail Sales at M&G Investments, commented:
"Given the almost daily news on rising prices, it is unsurprising that a relatively high number of advisers say their clients' main investment concern is how to tackle inflation. Having enjoyed a long period of low inflation - and in some goods a period of deflation - the insidious threat of inflation is back.
"Naturally, capital losses and reduction in income continue to be the biggest concerns for investors. Feedback, such as the results of this survey, is vital in understanding what intermediaries and their clients issues are. This helps us to ensure our range of funds are relevant to their investment needs."
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