Investors undeterred by market volatility
18 September 2007
Britons are not being deterred from buying stocks and shares by the volatility of the market in the wake of the sub-prime mortgage crisis in the US.
However, the cost of purchasing shares and ignorance about how the market operates are putting them off investment, according to research from the Association of Investment Companies (AIC).
A third of investors lacked the confidence to invest, while almost a half said they did not have the funds to buy stocks and shares.
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The study found women were more reticent about investing than men. Just six per cent of female respondents thought that the stock market represented the best means of long-term investment, compared to 16 per cent of men.
Daniel Godfrey, Director General of the Association of Investment Companies said: "It's interesting that a lack of knowledge scores so much higher than risk aversion as a reason for not investing in the stock market, suggesting it's a lack of financial understanding, not apathy, that keeps many potential investors sitting on their hands."
Mr Godfrey advised the more cautious types to consider buying regularly when stock prices are low.
