By Andrew Bushe
DUBLIN — Falling interest rates have led to a huge increase in people investing in stocks, according to the first survey of the retail investment market published last week.
Almost £1 billion was invested last year — a growth of 28 percent — compared to the post office, up 5 percent, and bank and building society deposits, up 17 percent.
Gavin Caldwell, chairman of the Irish Association of Investment Managers, predicts a further 20 percent growth in investment this year, with an additional £1.2 billion being invested.
Pramit Ghose, chairman of IAIM’s retail funds committee, said the Irish personal investment market is heading in the same direction as the U.S. mutual funds market.
On a five-year basis, managed funds exhibited annualized returns of 11.5 percent, compared to 2.4 percent for a building society account or 7 percent for the post office.