IMA figures for March 2014 – Analysis from Simon Morris

By Simon Morris On Monday, May 19 th, 2014 · no Comments · In , ,

The IMA’s figures for March 2014 showed that UK Equity funds were the best-selling region in March 2014, this is for the fifth consecutive month. With property based funds still popular and a growing appetite for property-based ISA’s, the UK remains very attractive to national and overseas investors.

There was an expected late rush into ISA investment at the end of the year with around £358 million invested in the first five days of April. While investing in an ISA should be actively encouraged it’s wiser to follow the market and invest at the opportune time, rather than at the last available minute.

This late £358 million rush, according to the IMA, is higher than any other full month in the year and £11 million more than the same time last year. This shows a strong desire from UK investors to get into what looks like an increasingly promising market.

Simon Morris, Property Advisor to Fund Managers offers the following advice relating to property-based investors.

“Commercial property is a sector that shows signs of improvement regarding the continuation of economic recovery. However, caution is advised, given widespread warnings in certain sectors and areas of over-priced valuations.”

“Returns are still expected of between 8% and 12% in the Commercial sector this year, as occupancy rates improve.”

“Ensure funds have a good portfolio to retail and office space, looking to Europe now is seen to be worthy.”

Attractive rates of return

Simon continues “For those investors with lesser amounts to invest, keep an eye out for rates on property-based ISA’s. These are growing in popularity and offering attractive investment rates of return for both the short and long term.”

“For those feeling braver and looking to invest into property-based funds – choose carefully. Ensure that the funds are regulated and also that the initial investment is guaranteed.”

Insight from Simon Morris

Simon Morris has a wealth of experience in both Residential and Commercial property investment. He believes that as rental income increases and demand for new stock continues to grow all across the UK, having an element of this valuable market in your investment portfolio should continue to ensure a stable and reliable return. no credit

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