More than half of investors claim that security is their main priority when choosing investment prod...
More than half of investors claim that security is their main priority when choosing investment products, accord-ing to Alliance & Leicester's Wealth Tracker Index.
The report showed that, as the economy continues to look unstable, 53% of investors are opting for products offering guaranteed returns and only 18% are choosing investments that could reap higher returns.
Investors are also becoming more financially savvy and less trusting ' one in 10 of those questioned would opt for products that are simple and straightforward. Only 9% of consumers would rely purely on advice from a trusted adviser when choosing their investment.
Investors were also sitting tight with their investments and hoping to gain longer-term rewards.
Only 4% of those questioned said they see having accessibility to their funds as the most important factor when choosing an investment.
About 18% of investors wanted a high return on their cash and would look for this before choosing it as an investment.
Simon Ripton, product manager for investments at Alliance & Leicester, said: 'Given the state of the market over the past year it is not surprising investors are opting for secure financial products. The findings suggest that investors are split into two groups ' those who want sheltering from market uncertainty, and those who want a high return on their investments.'
Since the dotcom bubble burst in April 2001, the market has suffered a series of blows from which it, and investors, have yet to recover. Investor confidence has also been knocked by scandals such as Enron and WorldCom.
The survey looked at a sample of 2,000 people and asked them what they view as the most important factors when considering an investment product.
To promote 'long-term investment'
Switching 'hard and expensive'
Smaller funds still packing a punch
To drive progress