Diversified portfolios 'important for investment'

By Sarah Engle, Fri 13 Aug 2010 - Published in Banking

Savers who are looking to invest their money because of low interest rates should attempt to build a diversified portfolio, according to an expert.

Recent research from the Fair Investment Company found that 69 per cent of savers are considering taking their money out of bank accounts and investing in riskier assets in a bid to make a return.

Commenting on the trend, AWD Chase de Vere head of communications Patrick Connolly said that savers have been placed in a "difficult position" because low interest rates mean they are effectively losing money when inflation is taken into account.

Offering advice to those starting to invest, he continued: "The answer is they should invest in a diversified portfolio - so they need to get a combination of shares, fixed interest and a property - and spread their risks."

Mr Connolly added that investors are currently acting cautiously, due to the uncertainty which is found in the markets and the wider economy, and are reluctant to look at assets that have a large amount of risk involved.

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