Sponsored by
Consumers plough cash into funds
Sales of investment funds rose for the fourth month in a row during May as consumers hunted for higher returns on their cash.
New investments into UK-based unit trusts and OEICs (open-ended investment companies) made by individuals reached 2.84bn during the month, according to the Investment Management Association (IMA).
The figure was more than a third higher than during April and was the strongest month for sales outside of the ISA season since the group's records began in 1960.
It is thought the increase is being driven by a rise in confidence among investors that now is a good time to buy into the stock market.
Record low interest rates are also causing people to look for alternative homes for their money as returns on savings accounts have fallen to zero in some cases.
Around 1.3bn of the total money was invested in bonds, which are less volatile than shares and can be used to provide a regular income, making them a good alternative to savings accounts for investors who are prepared to take a bit more risk.
Just under 1bn was also put into equity funds, the highest level for 13 months, suggesting investors are ready to return to the stock market. Investments into tax-free ISAs fell to 312.4m during the month, down from 672.4m in April, when inflows were boosted by the turn of the tax year.
Email to a friend
Print this page- Three-inch blanket of snow heading our way today
- Alan Shearer in list of favourites for Leeds and England jobs: Latest odds
- Barnsley’s Keith Hill invokes Fawlty Towers over link with Leeds job
- McCormack feels United search can be narrowed down
- Redfearn throws down gauntlet as queue builds at Elland Road
- Rival chips in with £500,000 to restore the original Harry Ramsden’s
- Visit from Princess as Serbian culture celebrated
- SportsTalk: Leeds United’s manager search, Super League and Calcutta Cup
- Libraries aren’t like supermarkets, they are magical places where dreams begin
- Strategic review will lead to job losses at Yorkshire Bank
Looking for...
Featured advertisers
Jobs
Search for a job
Motors
Search for a car
Property
Search for a house
Weather for Yorkshire
Saturday 11 February 2012
Today
Cloudy
Temperature: -1 C to 1 C
Wind Speed: 9 mph
Wind direction: South east
Tomorrow
Light rain
Temperature: 1 C to 6 C
Wind Speed: 8 mph
Wind direction: North west
