Investment provider key influence

New research from Legal & General Investments reveals that more than a quarter (28%) of investors rated ‘investment provider’ as the main influencer when choosing a fund.

The findings come from Legal & General Investments’ annual What Matters Investment Index which aims to investigate the views of the everyday investor, and track how sentiment and behaviour changes over time.

Other factors that investors consider when selecting an investment fund include past performance, which was the choice for almost a quarter (23%) of respondents. More than one in eight (14%) look at the fund manager before choosing a fund.

Fund fees and charges were a consideration for less than one in ten (8%) investors, highlighting the willingness of investors to accept fees and charges when a fund’s performance meets their requirements.

Geographical coverage of the fund was important to 6% of investors.

Simon Ellis, managing director, Legal & General Investments, said: “The result of this research highlights how important the strength of the investment house is for customers when making investment decisions.

“At a time of significant market volatility and low returns a strong brand with an established heritage is well positioned to help consumers navigate the troubled economic waters.”