Investors favouring equities

Category: Investments
Date: 3/8/2010

Investor's faith in equities continues to be restored, the latest figures from the Investment Management Association (IMA) have revealed.

Sales of investment funds hit £1.8 billion during the first month of the year, making it the best January on record.

Equities started the year as the leading asset class, accounting for 30% of all sales, while bonds, which led during much of 2009, accounted for 17%.

The figures also suggest that equity investors are becoming more adventurous, preferring the Global, Asian and North American sectors to the UK and Europe.

However, remaining the most popular IMA sector amongst investors in January was property, consolidating the position it achieved in the last quarter of 2009.

There were also encouraging signs that investors seem intent on using their tax-free ISA allowance for the 2009/10 tax year.

Sales of stocks and shares ISAs amounted to £174 million during the month, massively ahead of the £2 million achieved in January 2009.

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