Investor interest in cash to wane: ING Direct
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Rachael Micallef is a journalist with InvestorDaily, a Sterling publication.
Interest in cash will diminish in the New Year, with investors looking for solid returns, according to ING Direct.
While cash was a popular asset option throughout 2012, the recent interest rate drop will see it lose its predominance as an investment.
"Until the global financial markets stabilise, I believe consumer conservatism will continue to prevail," ING Direct executive director of distribution Lisa Claes, told InvestorDaily.
"While the predominance of cash as an asset may begin to wane, the appetite for stocks with solid yields will not."
In 2012, a sluggish credit outlook and growing consumer expectation of integrated advice resulted in an increase of converged model offerings.
With industry changes, including the government's Future of Financial Advice (FOFA) reforms, becoming mandatory as of 1 July 2013, ING Direct forecast that the specialisation of businesses will remain a market trend.
"On the distribution front, in 2013 the nascent trend for financial planning and mortgage broking business to converge will continue," Claes said.
"Although it may not suit each and every business model, the value of specialisation remains, and I believe. we will see distribution networks give more consideration to the growing array of alternative converged model offerings