Cash investments are king for cautious investors

Some 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 have 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.

Despite concerns of 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.

Amy Nauiokas, MD and Head of Barclays Stockbrokers commented: “The current climate has meant that some investors are continuing to seek security and are remaining cautious by investing in Money Market and Equity Income sectors - indeed, we have actually seen an increase in investments in Money Market funds over the past few months. However, confidence in specialist sectors, in particular Asia and China, indicates that investors continue to seek opportunities outside the UK and traditional equity sectors.”

Henk Potts, Equity Strategist, Barclays Stockbrokers: “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. 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.”