A chart tracking which sectors advisers are recommending to clients has shown that international fixed interest funds were amongst the big winners during 2008, moving up 8 places to 5th place.
The Skandia Investment Attitude Chart tracks which sectors financial advisers are recommending to investors, based on the sales figures of the Skandia fund platform.
Investment funds are grouped into 14 sectors on the Skandia platform and the chart provides an indication each quarter of how advisers are feeling about certain types of investments in response to market conditions.
UK equity funds, which normally receive the highest level of investment slipped from first to second place as investors take a more cautious approach to their investment decisions.
UK fixed interest funds ended the year in first place, with Cash and Money Market funds taking third place.
The property and active managed sectors both fell three places to 9th and 13th respectively over the year.
In the individual fund sales the BlackRock cash fund topped the charts during 2008 with the M&G High Interest and Invesco Perpetual High Income fund taking second and third spot respectively.
"Fixed Interest and Cash funds were popular during 2008 as advisers and their clients take a slightly more cautious approach to portfolio construction," says Graham Bentley, head of investment marketing at Skandia.
"Extreme volatility in stock markets last year and the ongoing economic turmoil has clearly had an impact on investor confidence which has had a knock of effect on where they decide to invest.
"The most important thing is to take a structured approach to building a diversified portfolio. Advisers must be very clear on what their client's attitude to risk, or more precisely loss, is and build a portfolio that matches their specific requirements. This will give consumers a clearer picture of how their investments should perform over the long term."
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