Emma Wall, Head of Investment Analysis & Research at Hargreaves Lansdown, comments on young adult investors taking advantage of their tax wrappers so early in the new tax year.

It is great to see young adult investors taking advantage of their tax wrappers so early in the new tax year. It has been a difficult start to the 2022/23 tax year, with significant market volatility caused by geo-political uncertainty and rising inflation – and corresponding central bank policy. Yet if you are investing for the long-term, as those in the cohort are, particularly in a LISA or SIPP wrapper, then it is the right thing to do to look through the headwinds to multi-decade growth opportunities. With a potential investment horizon of half a century in the case of a personal pension, inflation’s impacts – however painful in the present – are transitory and a broad-based competitively priced passive fund can be an excellent option. A global equity tracker will offer geographical diversification with a bias the economic giants of the globe. If you are looking to add to this allocation in the future consider upping your exposure to emerging markets. With a 20, 30, 40 year time horizon most investors can afford to take on more risk for the potential reward.

Gen Z back passive funds for long-term growth

Media contact: Carla O'Shaughnessy, Hargreaves Lansdown, 07980 820420 / carla.oshaughnessy@hl.co.uk