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69% will ditch cash for higher risk investments
The latest research by Fair Investment Company has revealed that more than two thirds of investors are prepared to take more risk while rates remain so low in the hope of better returns on their cash. "With the base rate still stuck at 0.5%, savings rates are very poor," says Nick Scarrett, head of pensions and investments at Fair Investment Company.
"The average savings rate is currently just 1.63% while the average cash ISA rate is 2.07%. Even the top rates aren't paying much over 4% when you fix for 5 years, so it is not really surprising that savers have had enough of earning such little interest on their cash," he said.
When asked what type of investment product they were most likely to opt for, only 31% of respondents said cash. The remaining 69% said they would look at riskier assets, with more than half (55%) of those respondents choosing structured products. Other options respondents said they would choose included equity funds (14%) and corporate bond funds (16%).
