Private investors pour savings into equities in record numbers
RETAIL shareholdings soared to their highest level since the start of the financial crisis in May, following four quarters of net buying, research out today shows.
Private shareholdings reached £237bn last month, said Capita Registrars, with £798m net added to the holdings between March and May.
In total, private investors traded £1.4bn between March and May, the busiest two-way trading period since last summer.
The surge of interest in equities for private investors is due to the paltry interest rates on other savings options and a renewed appetite for risk, Capita Registrars chief Charles Cryer argued.
“Private investors have recognised equities offer protection against inflation, the prospect of growth, and a superior income to many other assets. It’s no wonder they have been pouring their savings into shares,” he said.
Private investors owned 11.7 per cent of the equities market last month, up from a record low of 10.9 per cent last year.