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Investors fail to benefit from rally in equities...

A staggering 97.8% of private investors have failed to identify equities as the best performing asset class over the last two years, according to research issued by fund management house New Star Asset Management.

The research, conducted in association with NMG, surveyed 2,000 investors from across the UK. They were asked which UK asset class they thought was the best performer over the last two years to 30 April 2005: property, fixed income, equities or cash.

Only 2.2% of investors correctly identified that equities had returned the most over the period. The overwhelming majority of investors, 62.8%, thought that property offered the best returns, whilst 2.7% opted for fixed income. 3.7% of investors thought cash had performed the best, whilst 28.6% did not know.

In fact, equities as measured by the FTSE All Share total return index rose 35.3%, residential property rose 27.1%, commercial property rose 33.4%, corporate bonds rose 12.9% and gilts rose 9.2% over the period.

Rob Page, Marketing Director, New Star Investment Funds comments: -
“This research highlights the gap between consumer perception and reality. Investors clearly believe that property has been the strongest performing asset class, and are unaware that equities outperformed residential property by 8% over two years.

“This raises a number of important issues. Equities are still suffering negative sentiment, despite significant recovery from their 2003 lows. More worryingly, investors still hold the misconception that the housing boom of the late 90s and early millennium is continuing".

See full report here. (Note: Its-YOUR-money.com provides this link for your information ONLY and we make no recommendation regarding the products or services provided).

 

  9 October, 2008 © 2008 K.R.Wade and Co Ltd prev page next page