Many savers turned their back on high street deposit accounts last year as new figures show a record year for investments.
According to figures from The Investment Management Association (IMA), a record amount was paid into investment funds last year. Consumers invested £25.8bn in unit trusts and open-ended investment companies (OEICs), types of investments that allow individuals to pool money together to buy stocks and bonds.
The figures are the highest since records began in 1992 and 45 per cent higher than the previous record set in 2000, when new investments totalled £17.7bn.
An IMA spokeswoman said: ‘A combination of factors led to this significant increase in 2009. Low returns on savings accounts caused people to look at putting their money into other assets. At the same time, the recession caused them to increase their savings levels.’
In total, £9.9bn was invested in bonds during the year, while £7.3bn went into shares, compared to 2008, when people withdrew £1.3bn more from equities than they invested.
The increase in investments, combined with strong stock market growth during the year, also helped to push up the value of funds under management to record levels.
