November leap in unit trust investments: Private individuals put in pounds 450m, five times as much as the total a year ago

Click to follow
The Independent Online
INDIVIDUAL private investors put pounds 450m into unit trusts last month, more than five times last November's figure of pounds 87m.

Despite sales by institutional investors - one took profits on pounds 200m worth of unit trusts - total new investment was pounds 407m, a rise of nearly 60 per cent on last year's pounds 257m and the highest November figure for seven years.

Figures compiled by the Association of Unit Trusts and Investment Funds (Autif) show that one of the highest levels of net investment, at pounds 120m, was into funds geared towards income-producing UK equities. This sector was boosted by investors reacting to cuts in building society savings rates.

Earlier this week Building Societies Association figures showed that the societies had suffered the largest net outflow of funds in November for more than seven years.

The total amount of money invested in unit trusts so far this year has been pounds 8.2bn - easily the highest total at this stage since records were started - with the number of account holders jumping to nearly 5 million.

Other popular areas of investment were in UK general funds, UK growth funds and UK smaller companies.

Autif also showed that pounds 1,000 invested in an average UK equity income fund 10 years ago would now be paying pounds 112 income a year on a capital sum of just over pounds 3,000.

The same amount invested in a building society account 10 years ago would pay pounds 33 with no capital growth.

The Association of Investment Trust Companies announced that 29 investment trust launches in 1993 raised a total of pounds 1.48bn compared with last year's 15 launches worth pounds 531m.