Investments unlikely to grow this year, say retail investors
27 September 2010 / by Paul Dicken
Retail investor sentiment is ‘bearish’, with over half of investors forecasting their portfolio to devalue or see no growth in the next six months, according to Legal & General.
Publishing its first What Matters Investment Index, Legal & General Investments said there was a ‘sense of uncertainty and pessimism about the next six months’ amongst investors.
The survey of more than 1000 investors in equity ISAs, unit trusts and investment trusts also showed ‘DIY investors’ had delivered three per cent higher returns over the last six months compared to those investing through banks or building societies.
Those investors collaborating with an independent financial adviser (IFA) saw a net return of 5.21 per cent compared to the ‘DIY investors’ – classed as those making their own investment decisions without an IFA – who delivered a net return of 6.78 per cent.
Twice as many investors were planning to invest in active funds rather than passive investments, with only two in five expecting to increase their exposure to equities.
There was some uncertainty amongst the panel about which asset class they would select in future, with one in three citing the reputation of a particular investment house as the most important influence on decisions.
Investors making their own decisions were more likely to invest in equities over the next six months, with property funds attracting the least amount of interest amongst the entire group.
Simon Ellis, unit trusts managing director at L&G Investments, said: “Investors are clearly looking for some signs that the market is recovering, and that this growth is both sustained and sustainable.”
He said the index was aiming to ‘understand the intentions of the country’s sophisticated investor’ in an environment with so much attention focussed on the financial services industry and with risk now fundamental to everything the sector was doing.
The index surveyed people with an average portfolio value of £111,217 excluding pensions but also included people with portfolios under £5,000.
© Fair Investment Company Ltd
| Product Name | ISA Option | Income Yield | More Info | |
|---|---|---|---|---|
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Investec FTSE 100 Income Deposit Plan |  |
3.50% per annum |
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| 6 year capital protected deposit plan paying a potential income of 3.50% annually or 0.28% monthly. Also available for Cash ISA and Cash ISA transfer. | ||||
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Monthly Income Plus Fund | |
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Invesco Perpetual High Income Fund | |
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| One of the UK’s most popular income funds, the Invesco Perpetual High Income has delivered consistently good long term returns through a variety of market conditions. Income is paid to you twice yearly. Up to a 100% Discount off the Standard Initial Fund Charge. Click here to view latest Fund Facts » |
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M&G; Corporate Bond Fund | |
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| The M&G; Corporate Bond Fund is a conservative ‘blue chip’ sterling fund that aims to produce a higher return than UK government bonds. Income is Paid to you Quarterly. 100% Discount off the Standard Initial Fund Charge. | ||||
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Jupiter Merlin Income Portfolio | |
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| The Jupiter Merlin Income Portfolio fund aims to achieve a high and rising income with some potential for capital growth. Income Distributions are made to you quarterly. 95% Discount off the Standard Initial Charge. Click here to view latest Fund Facts » |
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The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
| Product Name | ISA Option | Maximum Potential Return | Term | More Info | |
|---|---|---|---|---|---|
|
FTSE 100 Enhanced Kick Out Plan | |
10% per annum |
Up to 6 years |
More Info > |
| Structured investment plan with the potential to mature after years 1, 2, 3, 4, 5 or 6. If the plan matures early it will return 10% times the number of years the plan has been in force. Also available for Stocks & Shares ISA and ISA transfer. | |||||
|
FTSE 100 Kick Out Deposit Plan | |
6% per annum |
Up to 6 years |
More Info > |
| Capital protected deposit plan with the potential to mature after years 3, 4, 5 and 6. If the plan matures early it will return 6% times the number of years the plan has been in force. Also available for Cash ISA and ISA transfer. | |||||
The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
| Service | ISA Option | Minimum Investment | More Info | |
|---|---|---|---|---|
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Share Trading Account Plus | |
More Info > | |
| Trade in a wide variety of investment options including International Equities, Warrants and Covered Warrants. Frequent traders get a reduced rate of £8.95 | ||||
The value of investments and any return from them can fall as well as rise and you may not get back the full amount invested. Please ensure that you read the Important Risk Information below.
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