The Association of Unit and Investment Trusts says equity income funds are weathering market turbulence and continue to offer the highest returns in the long term.
According to Autif's latest figures, the total return from £1,000 invested in equity over ten years to October 1 grew by 168% adding £2,680 in value. An average savings account added £636 in value and corporate bonds added £2,138.
The capital invested in October 1988 in an average corporate bond fund grew 22 per cent over ten years compared to 79 per cent in an average UK equity income fund.
On regular savings of £50 a month, the equity investment in a growth fund outstripped the savings account deposit after 5 years by £531, increasing to £2, 994 over ten years.