The sovereign debt crisis and market volatility are now the most prominent causes for concern among investors, according to a survey conducted by M&G Investments.
Both factors have overtaken inflation as the primary concern, with 50.7% of IFAs polled confirming that “these were the key matters keeping their clients awake at night.”
Only 12.3% believe inflation is the most pressing concern.
Jonathan Willcocks, the managing director and global head of retail sales at M&G Investments, says: “It’s unsurprising that investors are apprehensive about how to best invest their hard earned cash in view of the torrent of bad news coming out of Europe, and the fact that they are unable to see how the crisis will play out.”
Capital losses was the top choice of 35% of respondents, while equity market risks was rated top by 26%.
Opinions were almost evenly split on the outlook for the UK, as 42.6% said it remained the same as it did last year while 41% said they felt less optimistic.
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