Investors not put off by stock market volatility

Research from Abbey Savings has established that more than 15 million Britons are still investing in equity markets while a further 6.6 million considering taking advantage of current lower market valuations and investing in the stock market.

However, Abbey’s research shows a considerable number have been deterred by the recent market volatility with 11.9 million stating they would not invest in the stock market.

The research discovered that those living in Wales and the South West are most likely to invest in the stock market, with 33% currently having some exposure, compared with just 19% of those in Scotland and 29% in the South East.

Just over half of investors decide what to invest in by reading the newspapers, whilst a further 36% seek advice from a financial adviser. Those relying on online stock tips amount to 32% while 42% seek advice from their family and friends.

Andy Parsons of The Share Centre, emphasised the need for investors to have a financial plan. He said it is vital that investors consider the financial events that may occur throughout their lifetime and that they understand where the finances to pay for these events will come from.

A simple strategy is to earmark certain savings or investments for certain events and remember not to access those monies until required. Failure to adopt these principles could mean hopes and dreams fade, while an increase in debt may potentially follow, concluded Mr Parsons.

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