Investment diversification has been a key trend for investors over the last decade, the Investment Management Association has revealed.
Over the last ten years, UK retail investors have been diversifying their portfolios through a combination of non-equity assets and a larger share of their equity investments outside of the UK and Europe than ever before.
Commenting, Jane Lowe, director of markets at IMA said: "Investors are showing greater diversification in their portfolios with a move to a more balanced spread of assets. And while the majority of gross sales still go in to equities, we are seeing investors move towards larger weightings of equities outside of the UK and Europe compared to ten years ago."
The analysis also highlights the difference between those investments made by ISA investors and those made by non ISA investors. The statistics show that ISA investors are more consistent with the sector they choose to invest in; Cautious Managed and Protected sectors have been in the top five ISA selling ISA sectors over the last three years.
Meanwhile, non ISA investors have turned to the Corporate Bond and Absolute Return sectors.
Overall, 2009 looks set to be a record breaking investment year, as total net retail sales have so far reached a record £21.1billion, already ahead of the total for the whole of 2000.
Ms Lowe adds: "It is welcome to see the record inflows for 2009 following the low levels recorded in 2008. However, for 2008, the UK funds industry held up well compared to other European regions.
"This may indicate that advice, guidance and investor protection are central to consumers when investing and can provide a degree of stability in times of market stress."
© Fair Investment Company Ltd