Investors are not thinking strategically about how to achieve their long-term goals, and over one in ten investors never even review their investment portfolios, according to the latest research by JP Morgan Asset Management.

The current low interest environment combined with medium-term risks to inflation pose a serious threat to portfolios, said the asset management firm. In view of these dangers to investors’ wealth, it carried out a survey on attitudes towards core investments (defined as key holdings in place to meet long-term investment goals).

The findings were from an online survey of around 2,000 UK adults, weighted according to nationally representative criteria, the firm said.

In terms of reviewing their portfolios, 12 per cent of investors said they never did this, while 24 per cent said they only reviewed them on an “ad hoc” basis.

Furthermore, 15 per cent of respondents said they did not have core investments, but took instead a “scatter-gun approach” to investing.

Of those that did have core holdings, 32 per cent considered cash to be the main one. This proportion is even higher (47 per cent) for adults aged under 34.

Equities also played a large role in investors’ portfolios, with 32 per cent saying they considered equities to be their core investment. However, over a third of respondents said equities made up less than 40 per cent of their core portfolio.

“Investors cannot take for granted the importance of having a carefully selected core investment element to their portfolios. Core investments should be invested to deliver a long-term return and protection against the future impacts of rising inflation and changing interest rates. The survey results highlight that investors are not thinking strategically about their core investment holdings,” said David Barron, head of investment trusts at JP Morgan Asset Management.

“A high proportion of respondents hold cash as a core investment, which is offering very little if no returns currently. Although equities can be more volatile in the short term, investors should look to the longer term and consider the additional benefits they can offer. In particular equities can help combat the impact of inflation that cannot be gained from cash or some bonds,” he added.