By Daniel Hunter
Investors have pulled a record £1 billion UK stock markets ahead of the general election, according to The Investment Association.
With a huge amount of uncertainty surrounding the outcome of the general election, experts believe investors are securing their funds. Figures suggest that European equity funds are seeing their biggest inflow for 18 months at £663 million.
The Investment Association said the £963m taken out of UK markets in March, like the FTSE 100, was the biggest ever.
Laith Laith Khalaf, a senior analyst at Hargreaves Lansdown, said: “Private investors are staging a buyer’s strike in the lead-up to the election.
“However, investors need to take a deep breath and try to tune out the election clamour when it comes to making decisions about their portfolio.
“The election can certainly dent market confidence in the short term, but it won’t have a significant impact on the long-term profits of UK companies, many of which derive their earnings from overseas.”