Sales of investment trust saving schemes fell by 25% in 2002, to £206m from £275m in 2001 as investo...
Sales of investment trust saving schemes fell by 25% in 2002, to £206m from £275m in 2001 as investor sentiment weakened.
AITC figures show total purchases of investment trust saving schemes in the fourth quarter of 2002 fell by 28% to £42.64m, compared to £58.91m in the same period a year earlier. Saving scheme purchases were also down 16% from the £50.52m sold in the third quarter of 2002.
The total purchases of investment trust Isas through investment trusts and their managers decreased 40%in 2002, to £93.20m compared to £155.8m in 2001. Isa sales fell 26% in the fourth quarter of 2002 compared to the same period a year earlier, down to £10.97m from £14.92m. They were down 19% in the fourth quarter of 2002 compared to the third.
AITC director general Daniel Godfrey blamed the reduction in sales on three years of falling equity markets, uncertainty over the economic outlook and the possibility of war with Iraq.
'It is unfortunate that many investors tend to invest when markets are high and retreat when markets are low. The sensible approach is to have a balanced portfolio and drip feed money into the markets by regular saving,' he said.
What made financial headlines over the weekend?
The chairman doggedly tries to be amusing
'Profitability is almost a myth'
Active Wealth in liquidation
Cautious welcome for volatility