Investors fail to seek advice

Investment property news: MONEYEXTRA.COM

Nearly 40% of private investors don't know where to invest, but are still failing to seek expert advice to make their investment decisions, according to research carried out by UK fund management house, New Star Asset Management.

The research, conducted in association with NMG, surveyed investors from across the UK. They were first asked what type of fund they would choose if they had £10,000 to invest - an equity fund, a bond fund, a residential property fund, a commercial property fund or another type of fund. Some 39.2% of these investors said they didn't know where they would invest the ten grand.

When asked what most influenced them when considering which investment fund to choose, only 21.4% of investors said they consulted a professional adviser before buying a fund. 42.4% said they bought directly from a bank or building society.

Meanwhile, 10.1% of investors said they took tips from the personal finance sections of newspapers, and 3.6% said they bought an investment fund only after they had received and read a product brochure. Yet alarmingly, 11.1% of investors admitted they still relied on advice from family and friends.

- 7 June 2005