Recent statistics from the Investment Management Association show that September 2011 saw inflows of money into funds of £568 Million. This means that the third quarter of 2011 saw the lowest inflows of money since the third quarter 2008. Both quarters being periods of volatility in the stock market, it’s easy to see why people were reluctant to invest.
Of the money that was invested, investors tended to favour bonds which was the most popular asset class. The sectors attracting the most money were Corporate Bonds, followed by UK Equity Income and Cautious Managed.
During periods of uncertainty and volatility in the markets it’s always sensible to remind yourself why you are invested in the first place. If your goals and objectives have not changed and you are comfortable with the level of risk you are taking, then doing nothing and staying invested may me be the most sensible thing to do. However doing nothing is not always the easiest thing to do.
