Consumers want guarantees on investments

Forty-seven per cent of savers said they would feel safer putting money into the stock market if their original investments came with a guarantee, according to a new study by MetLife.

Another 11 per cent said a guarantee would make little difference.

The research indicates an increased desire for safer investments. More recently, investors have moved into fixed income, which is generally regarded as one of the less volatile asset classes.

Support for guarantees has edged higher over the past year. When the same survey was conducted in May, 41 per cent of savers favoured protection of their original investment.

“Fear of losing money when investing has always been one of the major motivations for savers and recent events have emphasized the risks,” said Dominic Grinstead, managing director of MetLife, UK branch.

“However stock market investing remains the best way to secure long-term returns despite volatility and the risks of short-term downturns. Investment guarantees remove the fear of losing your original investment while also offering the chance to lock-in gains.”