Half of private investors will funnel money into equities by the end of 2013, simultaneously ditching other asset classes such as bonds to free up funds, Schroders research has revealed.
The survey, which quizzed 14,800 investors, also revealed they are feeling more confident about investment opportunities this year, with 41 per cent feeling more bullish than they were previously. It's not surprising then, that more than one in three (37 per cent) UK investors are planning to ramp up the amount they invest in the next 12 months, with an average increase of 4 per cent, compared to 12 months ago.
But bonds are lacking votes of confidence as just 16 per cent of UK investors say they are looking to invest in fixed income assets this year.
The report also shows many investors are not putting their money where their mouth is, as they are not investing in the regions they believe will do best this year. For example, despite more than half (57 per cent) of UK investors seeing Asia Pacific as the biggest engine for investment growth in 2013, just 15 per cent will actually invest their own money in assets in the region.
Robin Stoakley, head of UK intermediary at Schroders, said: "UK investors recognise investment opportunities are good - stock markets globally are showing strong growth and the FTSE has recovered the losses it suffered in 2008, growing 11 per cent already this year.
"As a result, the trend to switch into equities and out of bonds is set to continue this year, but UK investors risk missing other growth opportunities by keeping large sums of money in cash-based savings, particularly given that interest rates remain at record lows and show no signs of rising any time soon."
