02/09/2026
Four in five investors find advisers prevent knee-jerk reactions
More than four in five (81 per cent) advised investors said their adviser makes them less likely to make knee-jerk reactions during volatile markets, research from M&G has found.
According to the firm’s Investor Compass report, 91 per cent also said advice makes their investment journey feel calmer and more manageable.
The savings and investment business said the research comes as market shocks are becoming more frequent.
It said the Vix index, often referred to as Wall Street’s ‘fear gauge’, has peaked above 30, a level associated with heightened stress, more often since 2020 than across the whole of the previous decade.
Ciaran Mulligan, chief investment officer at M&G Life, said volatility was an inevitable part of investing that could “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,” he said.
“The biggest risk is rarely volatility itself, but making short-term decisions that can derail long-term plans.”
The research also showed a confidence gap between advised and non-advised investors when markets become unsettled.
Only seven per cent of advised investors with larger portfolios, defined as having more than £100,000 of investable assets, said they lacked confidence in making decisions in volatile markets compared with 23 per cent of non-advised investors with larger
portfolios.
Meanwhile, 20 per cent of non-advised investors with smaller portfolios, defined as having up to £50,000 in investable assets, said they would consider making changes during volatility, compared with fewer than 10 per cent of advised investors.
M&G said the findings underline the behavioural value advisers provide during difficult market conditions.
However, 51 per cent of advisers believe behavioural coaching accounts for less than 30 per cent of the value they deliver.
Despite this, M&G said reassurance and discipline were among the most tangible benefits clients experience during periods of volatility.
Anusha Mittal, managing director of individual life and pensions at M&G, said: “Our latest research shows that advisers play a critical role in helping clients avoid short-term reactions and stay focused on the bigger picture.
“Through our work with advisers and clients across the UK, we see first-hand how valuable reassurance and perspective can be during periods of market uncertainty.”
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