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General public still prefer putting their money in property

The majority of active inv-estors are preparing to inc-rease their stockmarket exposure while the general public still prefer to invest in property, according to investor confidence res-earch by the AITC.

Fifty-three per cent of active investors expect the stockmarket to outperform property over the next year compared with 15 per cent of the general public while 40 per cent of the general public expect the housing market to outperform equities compared with 9 per cent of active investors.

Forty-six per cent of active investors are planning to increase their stockmarket exposure over the next six months compared with 6 per cent of the public.

The research also shows that 74 per cent of active investors hold the majority of their investment portfolio in UK companies.

AITC communications director Annabel Brodie-Smith says: “Interest rate rises and an apparent slowdown in the housing market have clearly not been enough to switch the general public off property and on to equities.

“It is not surprising to see many investors still extremely cautious when it comes to equities after the stockmarket ups and downs of the last four years.

“Sadly, we still have a culture where many private investors buy when prices are high and sell when prices are low although it is very encouraging to see so many active investors planning to increase their stockmarket exposure.”

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