Small investor confidence grows

Stock market recovered during 2003

The confidence of small investors appears to be picking up, according to new industry figures.

Investment fund sales grew for the third month running in December to £240bn - up 24% on a year ago.

Sales of tax-free Individual Savings Accounts were also up, with December's sales up 4% on November's figure and 36% higher than in 2002.

The Investment Management Association, which released the data, said the 2003 market improved from a rocky start.

Jason Butler, managing director of Bloomsbury Financial Planning, said the signs were positive, but investors were still cautious.

"I wouldn't say people are coming back to risky investments in droves", said Mr Butler.

"There seems to be more interest in strategy. Investors seem to be more aware that they have to have a plan."