Volatility has always been part of investing
What has changed is how it shows up.
This is the overarching theme behind the first edition of Investor Compass – our new thought leadership series. We dive into adviser and investor motivations, concerns, and options during volatile markets to identify where tensions and opportunities exist.
A few patterns came through
In the first edition
When markets move the impact is visible in client portfolios straight away. This can prompt a reaction before there’s been time to pause. It’s a dynamic every adviser will recognise. It creates a responsibility to not only manage their clients’ financial plans during volatility but clients’ behaviour as well. In a world of heightened geopolitical disruption, where politicians can move markets with a single post, this dynamic intensifies.
Investors can watch uncertainty unfold in real time on their screens. Market volatility can trigger and amplify emotions that precipitate a strong urge to act. Yet, these quick decisions can have critical consequences for long-term wealth strategies and in many cases the effects cannot be easily undone. Drawing on insights from investors and advisers, our research explores what shapes confidence, why advice matters most in volatile markets and how the adviser’s role is evolving in an increasingly complex information landscape.
The views and data in these pages should not be taken as a recommendation or advice.
M&G Investor Confidence Index
A barometer for investor and adviser sentiment, and where they may be misaligned – covering the economy, market and personal finances.
Methodology
We surveyed 500 men and women from across the UK, aged 18 and over, who actively keep track of their investments, representing both advised and non-advised investors. They are grouped into three categories: advised investors with more than £100,000; non-advised investors with more than £100,000 (described as 'affluent')'; and non-advised investors with less than £100,000 invested (described as 'non-affluent')'. Censuswide carried out the research between 6 and 12 February 2026.
In addition, we surveyed 150 UK-based financial advisers. Research in Finance carried out this survey between 17 and 20 February 2026.
We also carried out in-depth qualitative interviews with four advisers and four investors to help articulate the survey findings. The Agency Partnership conducted these interviews on behalf of M&G between 25 and 27 February 2026. Percentage numbers have been rounded up or down to the nearest whole number.
Testimonials are from genuine financial advisers and investors who have given permission for their comments to be used. Names have been removed to protect privacy.
