A poll of investors has found that fixed income funds are being preferred to equity investments.
New Star Asset Management's latest survey discovered that, if given £10,00 to invest, 16.5 per cent of investors would choose a UK bond fund.
Just 12.8 per cent would opt for an equity-based investment fund.
"Income, be it from equities, bonds or commercial property, continues to be the major trend in 2005," said Rob Page, marketing director at New Star Investment Funds.
He added: "Although most people still aren't sure where to put their money, investors are definitely leaning towards fixed income funds. This might seem surprising given the strong performance of equity markets, but investors are still drawn to the greater security of bonds.
"Investors who are undecided whether to go for equities or bonds could consider choosing a fund such as a Distribution Fund, which invests in both equities and bonds, and seeks to create long term income and capital growth." To Check out some of the best investment trust deals on the web, click here.
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