Concerned Investors 'Holding Steady' in Crunch

by Peter Wakeford
Published on 15 April 2009
Concerned Investors 'Holding Steady' in Crunch

Despite the recent sharp falls in stock indices, a vast majority of investors have no intention of selling up at the moment.

Many private investors have made cutbacks to the amount of money they are putting into the markets in the wake of the credit crunch, a wealth manager has confirmed.

The F&C Investments survey revealed that many people were becoming more conservative due to the currently turbulent market conditions - with 47 percent indicating that they had "tightened their belts" in the crisis. However, a total of 57 percent said that they continued to hold their investments "at the same level" and 94 percent said that they had no intention of liquidating their portfolios.

What's more, a total of 60 percent suggested that now was a "good time" to invest in shares.

Investors with exposure to stock markets have been hammered over recent months, as the global credit crunch has translated into a sharp downturn in economic output. The FTSE 100 in London, for example, is trading at around 40 percent below 2007's highs.

Mike Woodward, head of investment trusts at F&C Investments, added: "We know the past couple of years have not been easy for equity investors, but it is encouraging that they seem to be keeping faith with the long-term benefits of investing in shares."

Get our free money saving newsletter
Join over 480,000 other subscribers who grab our expert money tips, unmissable money guides & hottest bargains each week in our special email...