Institutional-style behaviours are increasingly shaping the self-directed investor landscape, with InvestmentMarkets data revealing a pronounced shift toward income and capital stability.
Commercial property funds and mortgage funds alone accounted for roughly one-third of all product views underscoring the role of real assets as portfolio anchors for high-net-worth investors seeking predictable yield and downside protection.
InvestmentMarkets CEO Darren Connolly said the platform’s behavioural indicators show a decisive shift in portfolio priorities.
“Investor attention is shifting in a very particular direction,” he said. “What investors choose to investigate is an early signal of where capital will flow, and right now the focus is overwhelmingly on income, stability and defensive assets. In times of uncertainty people want investments and returns they can rely on.”
Property, mortgage and private credit funds dominated more than 300,000 product views this year as investors reposition for a 2026 defined by rate uncertainty and persistent inflation pressures, Connolly said.
“Four or five months ago everybody was still fully expecting a couple of more interest rate drops, and we were starting to see commercial property in particular, pick back up again. That would have been one of the sectors that would have certainly benefited from the drops in interest rates, alongside maybe the small caps side of the market,” he told InvestorDaily.
“With this new paradigm, there’s probably no more interest rate drops and there may even be interest rate increases. People are pulling back from some of those areas of the market and looking for where they can get better risk-adjusted returns – and it really does depend on the individual investor.”
The data, drawn from engagement across 400 investment products in 20 categories, indicates a clear reweighting toward income-centric strategies traditionally favoured by institutional allocators in late-cycle environments.
According to Connolly, Trump and tariffs were primary macro drivers in the first half of 2025.
“February, March, April period was up and down – since then, as markets have recovered – there’s been a growing appreciation or awareness of valuation concerns, particularly in the US as everything bounced back.”
Meanwhile, he described artificial intelligence as a “steamroller”.
“I think investors are getting a little bit cautious as to how far that thematic might run … valuations are kind of historically quite stretched … I think people are starting to be a little bit more risk on than they were maybe 12 months ago,” Connolly said.
Interest in private credit funds continued to accelerate through the year, reflecting the asset class’s broad institutionalisation.
Connolly noted that private credit is “no longer a niche allocation, it’s a core holding” for investors who are looking for a consistent income yield without equity market risk.
Equities presented a more nuanced picture. While global equity interest lifted around 12 months ago, activity has since moderated, potentially reflecting valuation concerns in major markets. Small caps saw a mid-year spike before easing, and large caps recorded identifiable peaks just after the mid- and end-year reporting seasons. ETFs maintained steady engagement.
More specialised exposures – crypto, hedge funds and other niche strategies – collectively captured less than 2.5 per cent of product views, signalling limited appetite for high-volatility or unconventional assets.
“In terms of the total markets and the number of people in the market – the number playing in those niche sectors is relatively small.”
He said the data points to a broader mindset shift: increased independence paired with heightened caution.
“Investors want control, but they are also wary,” Connolly said. “They’re filtering noise, interrogating information, and taking the time to understand the products they’re considering.”
Over the past 12 months, the pattern has been consistent: investors are retreating from complexity and volatility and reallocating toward income streams, tangible assets and strategies that prioritise resilience.
“The behaviour is consistent and deliberate,” Connolly said. “Investors are moving on from momentum chasing; they’re investing to be able to withstand whatever the next phase of the cycle brings.”
When it comes to positioning for 2026, he believes investors are learning to live with geopolitical risk and instability in the US.
“Valuation concerns will remain, everybody’s watching AI to see whether this big acceleration of capital expenditure in AI and related factors continues, or if something falls over … I think generally people are more risk on.”
