The interactive investor (ii) Index: Q1 2024

Now with over four years’ worth of performance data, theinteractive investor (ii) index (formerly the ii Private Investor Performance index) provides a barometer of how our investors have fared and positioned their portfolios in the ever-evolving investment landscape.

You can download the full research, here.* 

Q1 2024 proved to be the best first quarter of any year since the index launched four years ago, with the youngest investors continuing their streak of outperformance from the last instalment of the index in Q4 2023 - up 5.1% versus +4% for the average customer. 

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This compares to the 4.15% achieved by the IA Mixed Investment 40-85% shares sector (up 2.3%), which can be a useful comparator with private investor portfolios, given its mix of bonds, cash, and equities. The youngest age cohort also outperformed other age groups over the 12-month period to the end of March 2024, returning 12.9% compared to 10% for the average ii customer. 

However, customers in the 35-44 age group have performed best since January 1, 2020, to March 31, 2024, when ii first started collating this data - up 22.7% compared to the ii customer average of 18.4% over the period.

Key findings:

• Young investors’ winning streak continues, and overall portfolio weightings to bonds reaches highest point since ii index’s inception.
• Little between private investors and fund managers (using the IA Mixed Investment 40-85% shares sector as a proxy) performance-wise.
• 18-24 year-old ii customers outperformed in Q1 and over six-, nine- and 12-month periods to 31 March 2024, boosted by narrowing investment trust discounts.
• Women continue to deliver slightly better returns than men over the longer time frames (up 18.7% versus 18% for men since 1 January 2020).
• 'Gilt'-y investing: UNITED KINGDOM 0.25 31/01/2025 (LSE:TN25) ranked among the top 10 most-held investments list across all age groups - bar 18-24 age cohort.
• ETFs rising in popularity as passives dominate.

Lee Wild, Head of Equity Strategy, interactive investor, says: “Despite having to navigate some dizzying twists and turns in the investment landscape since the start of 2020, and off the back of the longest bull market run in history, private investors managed to generate positive returns, with the average interactive investor customer up 18.4% over the period. 

“The ups and downs of financial markets mean that our Investor Index isn’t always going to make for comfortable reading. But this one-of-a-kind comprehensive snapshot of how self-directed private investors are faring reinforces the importance of staying invested through the turbulence, and how a well-diversified portfolio can weather market turbulence over the long term.” 

For more information on the trends and data in this research, or to speak to an ii expert, please get in touch.

The index can be found on the ii site, here: https://www.ii.co.uk/ii-index