Independent Financial Advisers (IFAs) are looking to UK shares and emerging markets for investment potential when advising clients, the new Virgin Money Investor Intentions Index has revealed.

The Index looks at where IFAs are advising clients to invest over the next three months, and both UK and emerging markets have come out as the two sectors to watch.

According to the research, IFAs were pushing cash investments over the past three months, but higher risk areas are back in vogue, despite continued market volatility.

Commenting, Scott Mowbray, spokesperson at Virgin Money said: “Funds investing in emerging markets are attracting a lot of attention at the moment, particularly from institutional investors looking to capitalise on higher than expected returns and the improved political stability in some developing countries.”

The news comes despite UK inflation fears, he added: “Concerns about UK inflation and predictions that the Bank of England may be forced to raise interest rates have hit the FTSE and lead some commentators to predict stormy waters ahead.

“However our first Investor Intentions Index demonstrates that IFAs remain confident enough about the long-term outlook for UK shares despite the short-term volatility, to advise their clients in that direction over the coming three months,” he added.

The Index looks into IFA confidence in 10 investment sectors, of which gold came out as the least popular, while property and commodities are unlikely to play a lead part in investment portfolio advice.

One up and coming investment sector to emerge from the index is Green and ethical investment, which according to virgin Money, “is down to increased fund choice and recognition that going green is not only beneficial for the environment but offers good returns too.”

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