More than one in two British investors rank a guaranteed return as their top priority when choosing their investment, new research from Alliance & Leicesters suggests.
This is a higher ratio than at the same time last year, and undermines the belief stockmarket recovery should have rebuilt consumer confidence.
A&L's research finds 53% of UK investors deem a guaranteed return as the most important factor when choosing an investment, up from 49% last year.
Good returns and low charges also seem to be the main priorities amongst investors, with 46% and 28% respectively ranking these as most important.
Alliance & Leicester's survey also finds 21% of respondents would base their investment choice on a friend's recommendation, while only 3% would cave in to the pressure of advertising.
Sarah Whitehead, product manager for investments at Alliance & Leicester, says: "Despite the recent upturn of the stockmarket, it seems that investors are not totally convinced of a full recovery and put security as their key priority.
Capital protected products are very popular amongst investors, proving that the market still has some way to go before people are willing to take risks with their capital," she adds.IFAonline
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