Share investments rise as customers want better return

According to the Investment Management Association (IMA).The public are taking out their cash from banks and investing it into investment funds, for a better return on their money.

Open-ended investment companies OEICs and Unit trust reached their highest levels since records begun in 1992, in fact it was up more than six times from the previous year. In 2008 3.8bn was invested, however in 2009 this figure shot up to over £25.8bn. A spokesman has commented that “Low returns on savings accounts caused people to look at putting their money into other assets.”

In 2008 consumers withdrew £1.3bn from the stock market; however in 2009 £9.9bn of new funds were invested in bonds and £7.3bn in shares over the year. Individual savings accounts ISAs, tax-free investment funds, climbed to £2.8bn.

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