Increased Amounts Paid into Investment Funds Last Year
Numerous savers ignored the poor savings rates from high St. Bank and deposit accounts last year as recent figures point to record twelvemonths for investment funds.
According to numbers from The IMA ( Investment Management Association), a record amount was invested last yr. Consumers invested £25.8bn in collective investments, types of investment funds that let individuals to pool money together to buy stocks and bonds.
The figures are the highest since records began in nineteen ninety two and 45 percent higher than the last record set in 2k, when new investments amounted to £17.7bn.
An IMA spokeswoman said: ‘A combination of factors led to this significant increase in 2009. Low returns on savings accounts caused people to look at putting their money into other assets. At the same time, the recession caused them to increase their savings levels.’
In total, £9.9bn was invested in bonds over the yr, while £7.3bn went into shares, when compared to 2008, when individuals removed £1.3bn more from shares than they invested.
The increase in investments, combined with strong stock market returns during the twelvemonth, also helped to force up the value of funds under management to record levels.
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