More than four in five (81%) advised investors say their adviser makes them less likely to make knee jerk reactions during volatile markets, according to new research.
More than nine out of 10 (91%) said advice makes their investment journey feel calmer and more manageable.
The findings, from M&G’s new Investor Compass report, highlights the crucial role Financial Planners and advisers play in helping clients navigate unsettled markets and avoid costly short-termist decisions, the firm said.
The research reveals a confidence gap between advised and non-advised investors when markets become unsettled. Just 7% of advised investors with larger portfolios said they lack confidence making decisions in volatile markets, compared with 23% of non-advised investors with larger portfolios and 25% of those with smaller portfolios.
One in five (20%) with smaller portfolios said they would consider making changes during volatility, compared with fewer than 10% of advised investors. Around 60% of advised investors say they remain calm and focused on long-term goals during sharp market falls, compared with 40% of non-advised investors with smaller portfolios.
The report has been published today as market shocks are becoming more frequent. The VIX index, often referred to as Wall Street’s ‘fear gauge’, has peaked above 30, a level commonly associated with heightened stress, more often since 2020 than across the whole of the previous decade.
Following President Trump's tariff announcements in April 2025, the S&P 500 fell around 10% in two trading days, while the FTSE 100 dropped by more than 10% as markets reacted to concerns over global trade.
Yet markets recovered their losses within a month, so investors who sold during the immediate shock would have turned temporary falls in the value of their investments into real losses rather than benefitting from the recovery that followed, M&G said.
Ciaran Mulligan, chief investment officer at M&G Life said: “Volatility is an inevitable part of investing, but it can test even the most experienced investors. While market sentiment can shift quickly during periods of uncertainty, history shows that staying invested and focused on long-term goals is often the best response.
“The biggest risk is rarely volatility itself, but making short-term decisions that can derail long-term plans.”
• The research resulted from a survey conducted by Research in Finance of 150 UK financial advisers, and by Censuswide of 500 UK investors who actively keep track of their investments on behalf of M&G between 6 February and 12 February.