Record Sums of Money Paid into Investment Funds in the Last Twelve Months
Many savers ignored the poor savings rates from high St. deposit accounts last yr as recent figures show record twelvemonths for investments.
According to figures from The Investment Management Association (IMA), a record amount was invested last year. Consumers invested £25.8bn in unit trusts and open-ended investment companies (OEICs), types of investments that let individuals pool money together to buy Equities and Bonds.
The numbers are the highest since records started in nineteen ninety two and 45 per cent more than the preceding record set in 2k, when new investments totalled £17.7bn.
An IMA spokeswoman said: ‘A combination of factors led to this significant increase in 2009. Low returns on savings accounts caused people to look at putting their money into other assets. At the same time, the recession caused them to increase their savings levels.’
In total, £9.9bn was placed in bonds throughout the yr, while £7.3bn went into Equities, when compared to 2008, when people pulled back £1.3bn more from equities than they invested.
The increase in investments, compounded with strong stock market returns during the year, also served to drive up the value of funds under management to record levels.
Consilium Asset Management LTD provides Investment Management Advice.
