Investor interest in cash and fixed interest waned at the end of 2009, as rises in the stock market prompted greater risk-taking according to Skandia, the financial platform provider and fund manager.
However, fixed interest funds – which include corporate bond funds – were still the most popular funds on Skandia’s investment platform in the fourth quarter of 2009, accounting for 23 per cent of sales. This was down from 28 per cent in the first quarter.
The next most popular funds were UK equity investments and managed
funds.
Cash and money market funds continued their decline in popularity over the year. They accounted for 14 per cent of sales at Skandia in the first quarter but just 8 per cent by the end of 2009.
The most popular fund of the year on the Skandia platform was the BlackRock Cash fund, which aims to pay a high level of income to investors. Corporate bond funds from M&G and Invesco Perpetual were also in demand.
Property funds grew in popularity towards the end of the year, accounting for 10 per cent of new sales in the final quarter, up from 6 per cent in the first quarter.
“These trends show confidence slowly returning with investors adjusting their portfolios back towards equities and property,” said Graham Bentley, head of investment marketing at Skandia.
Recent data from the Investment Management Association also showed renewed interest from investors in property. Property funds were the highest selling sector in November for the second month in a row, with net retail sales at their highest level since the property boom in March 2007.
