Risk appetite among clients is falling and has dropped below the level it was at a year ago, research suggests.

Some 52% of financial advisers who were surveyed said their clients’ appetite for risk has decreased over the last 12 months, with 8% saying the drop has been ‘dramatic’.

The poll by rplan.co.uk, the online investment platform, also found 29% believed the number of UK people using investment ISAs this year will fall, with 44% saying it will stay the same and 18% seeing an increase.

Half of advisers said they believed more people would save or invest if the ISA allowance was raised, although 41% believed the number would stay about the same.

Over a third of advisers (35%) said the main reason UK people will not invest this year is because they are worried about volatility on financial markets while 35% said it was because of a lack of spare cash.

The main reason people will invest this ISA season is because interest rates are so low, according to 41%.

Some 55% said UK equities were the most attractive asset class currently, versus 39% citing European equities and 25% US equities. Only 7% said cash is the most attractive option.

Stuart Dyer, Rplan.co.uk’s CIO, said: “No doubt the volatility in January and Brexit vote later this year are factors in making investors more cautious this year, although there are other issues around the world that need to be considered.

“But investing has never been easy and there have always been risks facing investors.”