Managed funds are proving popular, Barclays has suggested.
Cautious investors are looking to put their money into funds rather than individual shares, in a bid to minimize risk.
A new study from Barclays Stockbrokers shows that 63 per cent invest in the managed investment vehicles in order to keep a "diversified" portfolio, meaning that they are less likely to move out by drops in the value of stock for a particualar company.
In addition, 16 per cent said that they used funds because they wanted an "expert" to manage their money, while 11 per cent said that they were impressed by the "good returns" they offered.
Chris Stevenson, associate director of funds at Barclays Stockbrokers, said: "In current market conditions it is encouraging that the priority for investors is diversification as this is key to generating good returns and ensuring their portfolios weather market storms. The security that comes with knowing a professional is managing their money is obviously also a priority for funds investors and is likely to continue to be so."
He added: "Funds are a great way for the more cautious investor to access a broad range of markets and sectors to suit their investment objectives."
Under current UK law, every adult retains the right to put up to £7,200 into tax-free stocks and shares investing under an Individual Savings Account wrapper. Savers can also opt to invest up to £3,600 of these funds in cash.
Compare savings accounts via money.co.uk
