Cash is king for cautious investors

Investors continue to be cautious, according to Barclays Stockbrokers Funds Market top selling funds for April - June 2007. Investment figures show that volatility at the start of the year continued to impact on investors throughout Q2 as some opted for cash investments and income as the safer option.

Money Market funds were the most popular with the Fidelity Investment Services Cash Fund and the M&G Gilt & Fixed Interest Fund having the highest take up amongst investors.

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Despite concerns about volatility investors were still interested in specialist sectors. Asia Pacific, excluding Japan, was the second most popular sector after the Money Market sector with the Gartmore China Opportunities Fund being the third best selling fund. Following this, the UK All Companies and European sectors generated investment interest.

Henk Potts, Equity Strategist, Barclays Stockbrokers says: "Given the backdrop of increased volatility it's not surprising that investors have opted for safety. However, we still believe that equity markets look attractive, particularly here in the UK.

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"A mixture of robust economic growth, cheap valuations and high dividend payout should generate positive returns for investors. Remember, the art of successful investment is to buy the market when it is weak and cheap not strong and expensive."

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2007-08-08 08:43:16 © Moneyextra.com