The continuing market volatility has resulted in many investors seeking shelter in cash funds, according to Barclays Stockbrokers.
Money market funds represented some 39 per cent of all assets invested through Barclays as investors continue to be cautious amid the current market turbulence.
There was a significant shift in investment choices in the final quarter of the year with investors tending to move away from growth investments, according to Barclays.
However, the Gartmore China Opportunities fund was seen to be the third most popular fund bought through Barclays last year.
Commenting on the trend, Amy Nauiokas, managing director and head of Barclays Stockbrokers, says: "The dominance of the money market and equity income sectors reflects the cautious nature of our clients in 2007. But there are some investors who continue to find opportunities in more diverse markets, with the Asia-Pacific, specialist and emerging markets sectors remaining popular."
Elsewhere, research by Barclays Wealth recently suggested that Europe may not be able to escape a US recession.
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