Investors defy equities crash in savings drive

BILLIONS in losses over the summer have not put off retail investors as private buyers sought to take advantage of the current lows in the market, according to new research from Capita Registrars.

Small investors lost £20bn in shares from May to August, but still bought £1.3bn-worth over the three month period -- the largest net purchase of equities since early 2009.

Retail shareowners have made net purchases for the last five consecutive quarters – the longest run since Capita Registrars began studying their behaviour six years ago.

“Investors are looking everywhere to find an inflation proof income,” said Capita’s chief executive Charles Cryer. “Despite the turmoil, dividends have been growing strongly this year and the market is now yielding 3.8 per cent. That is twice as much as government bonds, yet also with the potential prospect of income growth as companies are cash rich and have begun to return that cash to shareholders.”