More than half of AJ Bell customers expected to back British shares in 2026

More than half of AJ Bell customers say they are considering investing in UK shares in 2026. These results, based on an online survey of 1,726 customers carried out between 8 and 12 December 2025, demonstrate that investors have a significant natural home bias heading into next year. Global and US shares are also popular alongside bonds, money market funds and multi-asset funds.

Why are investors looking at the UK?

The UK’s FTSE 100 is on track to achieve its best year on record since the global financial crisis in 2009, beating the S&P 500 and Nasdaq year to date with a 22.2% total return (as of close on 12 December 2025).

This performance has demonstrated to investors that the UK stock market still has a lot to offer, despite accusations of being stuffed with old economy companies. It has a wealth of stocks that offer steady earnings growth, generous dividends and plenty of jam today.  

Sectors like insurance, utilities and consumer goods enjoy predictable earnings and they can help to take the drama out of an investment portfolio.  

With so much talk around whether US tech stocks are spending too much money on AI and when they might see a financial return, it’s only natural for UK investors to seek solace in other places, and in brands they know and trust. The UK stock market is full of companies that provide everyday goods and services, meaning the public live and breathe these names. That familiarity is important when it comes to investing.

UK share valuations are also lower than in the US despite a re-rating in the FTSE 100 since late 2023 where it has gone from 10 times forward earnings to nearly 13 times. In comparison, the S&P 500 trades on 22 times earnings. That valuation gap is a key reason why overseas investors are showing more interest in the UK and it’s also why we continue to see plenty of takeover activity involving UK stocks.

Other areas investors are considering in 2026

US shares have been a great place to make money for more than a decade but 2025 was the year when sentiment shifted. Rich valuations, a less stable political backdrop, a high national debt and large exposure to an AI sector surrounded by bubble talk have led to many investors seeking greater diversification.

For some, that means adding more exposure in places like the UK and the rest of Europe, but it doesn’t mean avoiding the US completely. There is still some appetite for US shares, perhaps because the country’s stock market offers more rapid earnings growth than many other locations globally.

We’re also seeing higher interest for investments outside of the equity space. Interest rates have been trending lower on cash savings held with banks and building societies, encouraging more people to switch back into investments in search of higher returns. Not everyone wants to put all their money in higher risk investments, hence we’ve seen lower risk investments like bonds and money market funds grow in popularity and that trend looks to be gathering momentum as we move into 2026.

Multi-asset funds have struck a chord with members of the public looking to spread their risks across different assets through a single investment. Multi-asset funds are the investing equivalent of a bento box – a single entity split into separate compartments, each offering different flavours of investments. An investor can feast on a menu of shares, bonds and more through one fund, and leave asset allocation decisions to the fund provider rather than sweat over it themselves (like the AJ Bell funds).