Equity investments still popular, says IMA

Tue, 12 May 2009

The Investment Management Association (IMA) has said that investors are committed to equities for the long-term.

New research by the organisation shows that, since 2001, a net £30 billion worth of investments has been placed into the equity market and over half of all gross retail sales go into shares .

Historically, return for equity investments has weathered recessions, with results climbing strongly as the effects of economic downturn begin to subside.

The research also showed that the UK is particularly keen on equity, with less of a drop in investments compared to the rest of Europe.

Chris Bryant, head of statistics policy at IMA, said: "The research confirms that UK investors continue to give a strong weighting to equities in their fund portfolios, albeit with greater diversification compared to previous years."

The Threadneedle fund recently said that while average consumer finances have been hit by the recession, companies are still in a good shape to make investments .
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