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Investors report increasing confidence

Investors report increasing confidence

Category: Investments

Updated: 04/08/2009
First Published: 03/08/2009

MONEYFACTS ARCHIVE
This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Confidence appears to be returning to the investments market, with money invested into equities increasing by almost a fifth since the turn of the year.

The average amount invested in equities has increased by 17 per cent from £24,000 in December 2008, to £28,000 today, a report by Lloyds TBS Wealth Management has revealed.

In addition to the marked rise, almost three in ten (28 per cent) of investors said they felt confident about stock market investments over the last six months, compared with 16 per cent in December, while nearly a third (32 per cent) were more optimistic about their long-term financial prospects now than they did six months ago.

The findings come hot on the heels of a report by the Investment Management Association, which found an increased optimism amongst investors that the sector would improve between now and early 2010.

While the hike in the average sum invested still falls way short of the £51,000 recorded in November 2007, it is the first time that the average amount invested in stocks and shares has shown an improvement since the report began in last 2007.

Perhaps understandably, investors have adopted something of a cautious approach when dealing with their portfolios in recent times. In fact, four in ten have moved some or all of their equities into more cautious investments, such as cash or bonds.

"In the past few months, we have seen signs stabilisation in the markets, with some commentators suggesting the first green shoots of recovery are starting to push through," said Prabal Gupta, investments and marketing director of UK Private Banking.

"The signs may be small but this confidence seems to be infectious. Rather than simply talking about the recovery, investors are putting their money where their mouths is and cash is starting to flow back into the FTSE."

Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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