Reports indicate that British investors are currently selecting interest-bearing assets rather than equity funds due to high interest rates. Figures show that UK-based investors took a dim view of stocks in July, withdrawing a total of £983 million from equity funds while adding to money market funds and fixed income assets.
Britons unsure of which financial strategy to adopt during times of economic turbulence often seek investment advice from experts in Chester, Southampton and other cities across the UK. Wealth managers are holistic financial advisors who assist their clients in developing healthy investment portfolios, which are designed to help accomplish their economic goals.
July marks the 26th month in a row of equity funds experiencing record outflows. In the last three months, British investors pulled £1.95 billion from equity funds. Experts have commented that investors in the UK remain exceptionally averse to risk and are using the improvement in global share prices to pull cash, rather than relying on further gains and staying put.
Recent statistics indicate that UK investors are now focusing on safer harbours like money market funds and bonds. Fixed income funds saw inflows of £347 million in July, with activity driven by interest offering high yields. However, inflows were considerably less than the £880 million worth recorded in the previous month. Money market funds enjoyed £403 million of inflows in July, which was attributed to an investor preference to access liquidity during rising interest rates.
