The Association of Unit Trusts and Investment Funds claims UK equity funds have performed nearly four times better than deposit accounts.
AUTIF figures reveal the long term growth prospects of equity funds are 180 per cent better than savings in a building society account.
Looking at growth over the past 10 years, the trade body says the annual income on £1,000 invested in an average equity trust was £69, compared to £67 on corporate bonds and £21 on the average building society deposit account.
A lump sum invested in a building society account in 1990 added £491 to its sum by the end of last month. A corporate bond increased £2,339 over the same period while an equity trust grew by £2,983 or £3,294 in an equivalent PEP/ISA.
If an investor were to put aside £50 a month over that same 10 year period, an equity investment in a UK All Companies fund was worth more than the savings account by £5,020.