12 top trending finance & investment search terms 2023

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As we look back on what has been a fascinating year in financial markets, global politics and the wider landscape, we wanted to share a snapshot of what other people in the UK have been searching for this year.

While some may be obvious, having remained constant hot topics throughout 2023 in the UK, others have perhaps surprised us with the sheer number of search queries. It goes to show that pursuing sound investment advice and financial market intelligence remains important for many millions of British savers and investors. 

Here we count down our top 12 and hope to provide some information you may find useful when planning your savings and investments as we head into the New Year.

‘UK inflation data’

Inflation has been the financial story dominating headlines this year as the conflict in Ukraine pushed up energy and food prices across Europe and the US, hitting households hard. However, thanks to central banks intervening by hiking rates to combat inflation, it seems far more manageable now than it was at the turn of the year. How long inflation will remain ‘sticky’ before reaching central banks’ typical 2% target remains to be seen as we go into 2024.  

As per the latest data, the UK remains at 4.6%, the Eurozone at 2.9% and the US at 3.1%, so there is still some way to go before we can say the battle against inflation is truly won. 

‘Interest rates UK’

Another hot topic of 2023 has, of course, been interest rates. With 14 separate rate hikes since the middle of 2021, it seems as though we’ve now reached a peak and should start to see rates falling next year. However, this may take some time as central banks monitor inflation very closely and will want to tread carefully as they attempt to bring both inflation and interest rates down across the board. 

Owing to this new ‘high for longer’ interest rate environment, we introduced our new Liquidity+ portfolio this year. We believe this is a great way for you to make the most of your savings because Liquidity+ invests in a range of money market funds. This means you should benefit from rates being ‘high for longer’. It could be an ideal solution if you’re looking to invest your money in a low-risk fund with the added protection of diversification.  Even though it’s a low-risk investment, this isn’t a cash product and there’s still a chance the value of your investments could fall and you might get less than you invested.

‘Artificial Intelligence’

A topic we’ve covered quite extensively this year, artificial intelligence has no doubt been a real talking point of 2023. There is huge commercial potential for the emerging technology, with an estimated market share of around $140bn for new, innovative companies to compete for. Moneyfarm Quantitative Analyst Giorgio Broggi passed comment on the potential of AI technologies as part of the wider tech sector earlier in the year. Despite all this, even the best-known names in the sector, such as OpenAI remain deeply unprofitable with the nascent technology’s far-ranging capabilities still being hotly debated, both commercially and ethically. There are questions, too, around what it could mean for market participants, a subject our CIO Richard Flax explored in a recent article. However, interest in AI remains strong with heavy commercial backing from technology giants such as Amazon and Microsoft.  

‘Compound interest’

With interest rates staying ‘higher for longer’, it’s no surprise that so many Brits have been thinking about growing their savings through compound interest this year. 

Simply put, compound interest is where interest is calculated not only on the initial principal amount in a fund but also on the accumulated interest from previous periods. Essentially, it involves reinvesting the interest earned back into the principal amount, leading to exponential growth over time.

This is why saving little and often is so important and could add up over the longer term, versus entering and exiting the market, only to lose out on potential accumulated returns as markets fluctuate between the periods of investment. Savers should always keep compound interest at the forefront of their decision-making, as this can have both serious and negative outcomes when it comes to your long-term saving and investment strategy.

‘ESG’

Environmental Social and Governance (ESG) investing is a type of socially responsible investing that takes into account companies’ performance in terms of their environmental and social impacts as well as their responsible governance. 

This was, perhaps, one of the more surprising terms we saw so many Brits searching for this year, especially given the economic environment. But it’s pleasing that the trend continues to grow year after year and more people are becoming aware of both the challenges and opportunities presented by the ESG investment trend.

At Moneyfarm, we have a range of ISAs available to help your savings grow. With a Moneyfarm Stocks and Shares ISA, for example, you can invest up to £20,000 each year and any returns you make in a Stocks and Shares ISA are tax-free. Tax treatment of an ISA depends on your individual circumstances and may be subject to change in the future.

‘ISA’

Thanks to the currently high-interest rate environment, it’s little wonder that many Brits have been looking to take advantage, searching for ISAs that offer the greatest rates of return. ISAs are a great way of setting aside regular amounts to achieve a long-term financial goal, such as a deposit on a house. Likewise, a Junior ISA, or JISA, can help you save for your children’s future in a tax-efficient way. 

At Moneyfarm, we have a range of ISAs available to help your savings grow. With a Moneyfarm Stocks and Shares ISA, for example, you can aim for tax-free returns on up to £20,000 each and every year.

‘Savings accounts UK’

Much like those searching for ISAs in 2023, people have been seeking out the best High Street saving account deals possible to help their savings grow. But we believe there are some drawbacks to holding cash versus putting your savings into active investments or portfolios such as Liquidity+, as our Investment Consultant Peter Rice explains here. 

‘ETF’

An Exchange Traded Fund (ETF) represents a basket of instruments which is available to trade as one single product on an exchange. 

Many ETFs are sectoral or focused on a particular instrument. For example, if you wanted to take a long position on gold you could purchase one of many gold-themed ETFs instead of ‘spot’ gold itself. In this way, you’re aiming to reduce your risk profile and exposure to the price of physical gold through multi-asset diversification. 

Such a fund may be made up of, in this instance: mining company shares, manufacturers who use gold in the production process, a currency that is heavily correlated with gold, as well as physical gold itself – this helps create a truly diversified portfolio.

The majority of our portfolios are constructed using ETFs, which gives us balanced exposure to a wide range of global markets. And because ETFs are by their nature diversified, this helps us to further spread risk exposure across each of our portfolios. 

‘Risk management’

Risk management is a cornerstone of any investment strategy. Good risk management typically involves diversification (spreading investments across different assets and asset classes), setting risk tolerance levels, using hedging techniques (such as options or futures contracts), and regularly reviewing and adjusting portfolios based on market conditions. The goal is to balance the potential for returns with the level of risk that an investor is comfortable with.

Earlier in the year, we set out our approach to risk management and explained exactly how our Asset Allocation team constructs every Moneyfarm portfolio to mitigate against potential risks in the market. 

‘UK recession’

There has been a lot of discussion around a possible UK recession this year. Whether the UK economy can avoid a ‘technical’ recession in the near term remains in doubt, however, with some disappointing growth data towards the tail-end of 2023. Whether the UK is in a ‘technical’ recession or not, it will likely not feel that way to many households up and down the country. 

That being said, perhaps surprisingly, in the event of a UK recession, many of our portfolios would actually benefit, thanks to their globally diversified nature,as Moneyfarm Investment Consultant Tim Baudouin explains.

‘BRICS countries’

The BRICS group (comprised of Brazil, Russia, India, China and South Africa) is an important conglomerate of some of the planet’s most influential economic powers. It aims to foster cooperation and dialogue among these major emerging economies. Their primary objectives include promoting mutual development, enhancing economic cooperation and reforming global financial and economic governance to reflect the changing dynamics of the world economy. BRICS nations often collaborate on various fronts, such as finance, trade, technology, and security, to amplify their collective voice on global issues and seek more equitable representation in international forums.

Back in September, we reflected on the group’s latest plan to expand by a further six countries and what that could mean for the balance of power in the global economy.

‘Private pension’

Research carried out this year estimated that, in two years’ time, the UK government will spend more annually on state pension provision than defence, education and policing combined. Despite the government’s commitment to the triple lock, many fear this level of expenditure is unsustainable, and that future generations may not have access to a state pension whatsoever. 

This news, unsurprisingly, got many people talking about private pensions and how they can best set money aside to afford the retirement lifestyle they dream of in years to come.

Of course, most people in the UK will be automatically enrolled into a private pension scheme by their employer. But for those who are self-employed – with over one third of self-employed Brits having no private pension provision at all – being proactive early on could make all the difference. Equally, even for those who have private pension schemes, consolidating all your ‘lost’ pots into one easy-to-manage pension could help boost your retirement savings, giving you peace of mind. Before you make a decision to transfer, ensure that you’re not losing out on any valuable guarantees or benefits. This could include things like guaranteed annuity rates, guaranteed income or additional death benefits. Also take a look at your current pension scheme to assess  the fees you’re paying.Take note of any exit fees or penalties that your existing provider may charge should you choose to transfer.