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Investors are moved by FTSE high

80 per cent of investors in UK equity and fixed interest funds dont care that the FTSE 100 has breached the 5000 mark, according to research by Bates Investment.
Bates senior investment advisor Paul Illott says that while the breach might be significant for investors who have pencilled 5000 in as a signal to sell equities and bank gains, investors on the whole have become too focussed on the short-term market. The index is up over 50 per cent from its low point of 3287 prior to the Iraq war.
80 per cent of the 442 UK equity and fixed interest funds that were launched before the FTSE 100s peak have out-performed it since. Of the 442 funds 48 per cent out-performed the index by more than 50 per cent.
Illott says: “Investors should be looking to the longer term, and not concentrating on daily movements on the stock exchange. Investing is not just about equities and its not just about following an index.”

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