Many investors opt for a second property to act as their nest egg for retirement, but equities have significantly outperformed the asset class in the longer term.
Research from broker Bestinvest has revealed in the last quarter of a century, those investors who bought the FTSE All Share index - or just the FTSE 100 - and reinvested the dividends, achieved a return of over 1000%. Figures provided by Lipper showed an investor buying into the FTSE All Share at the start of 1986 would have seen return of 1110%, while those buying just the FTSE 100 would have made 1165%. The growth assumes dividends were reinvested, and dividends made up the vast majority of the returns, supporting the argument that shareholders should opt to reinvest income rather ...
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