Bonds, structured products, mutual funds and cash lead the way

Independent financial advisers in the UK are advising their clients to buy structured products, mutual funds, bonds or to stay in cash, according to a Morgan Stanley survey completed at the end of last year.

More than half of the IFAs surveyed are recommending all four options, with 70% of them promoting bonds and 50-60% suggesting the wisdom of investing in the other three asset classes. Around 5% were being offered hedge funds and 20% direct equity investments.

Over 50% of the IFAs recommend less than five structured products per year to investors, although 40% say they are more likely to recommend this investment type to clients now, given the economic climate. Between 15-20% recommend 5-10