The Investment Management Association publishes research showing that UK investors are sticking to equities in the long term.
British investors are likely to remain committed to equities over the long term, according to a new study by the Investment Management Association (IMA).
The research shows that equities will be at the forefront of investors' thinking, despite recent diversification in holdings and retail investors. It found that investors have injected £30 billion into equity funds since 2001.
Additionally, most gross retail sales are placed into equity funds, with 56 percent going into the funds in 2008. This proportion was the lowest ever recorded but still represented more than half.
"The research confirms that UK investors continue to give a strong weighting to equities in their fund portfolios, albeit with greater diversification compared to previous years," said IMA head of statistics policy Chris Bryant. "But the fact that investors have put a smaller proportion of net investment into equity funds in recent years could be viewed as a sensible move towards a more diversified portfolio."
According to the study, British investors have a higher regard for equity funds than Europeans. In 2008, net outflows from equity funds accounted for just one percent of funds under British management, compared with 6.6 percent in the continent.
"UK investors seem to see equities as a long term investment - this was shown last year when investors largely held their nerve, making much smaller net withdrawals from equity funds than other Europeans," Mr Bryant added.
