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Investors put trust in fund firms with over 10 years experience

Most UK investors would not trust a fund management company with their money unless it had been established for more than 10 years, according to research commissioned by Fidelity.

Fifty-seven per cent of the 2,000 investors questioned by Mori at the end of last year said they would only trust an investment house which had been up and running for 10 years. Taken as a mean average, that figure rises to 14 years.

Experienced investors – those who have been investing for at least 10 years – were even more demanding, with 7 per cent insisting that they would not entrust their money with a company which had been established for less than 20 years.

Both novice and experienced investors, however, expect less of a track record from fund managers. Seventy-seven per cent said they would be comfortable with a fund manager who had six years&#39 experience while 4 per cent said it was irrelevant.

Head of IFA business Stuart Holah says: “The research reinforces how, now more than ever, investors are looking to invest with fund managers from well-established fund management houses.

“It is particularly interesting to note that the average minimum prior tenure investors require of a manager is six years – around the length of a complete cycle through both the up and the down phase of stockmarkets.”

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