Research from the Association of Investment Companies showed 42% of active investors were finding buying opportunities amid the current market volatility.
This is despite an increase in belt tightening among the general public and active investors with 41% of the former and 32% of the latter curbing spending, compared to 17% and 23% a year ago.
Last year at this time 44% of active investors were planning on boosting their stock market exposure, so the figure has barely reduced even in the face of serious economic headwinds, including: the eurozone debt crisis, additional QE in the US and UK and fears of a slowdown in emerging markets.
Back in September 2008, only 33% of active investors were looking to broaden exposure to equities, which means current investor confidence is markedly higher than it was three years ago at the onset of the global financial crisis.
The AIC said inflation was the dominant financial worry for both active investors and the general public, but eurozone debt concerns and the threat of a double dip recession were also high on the agenda.
Among those looking to up their stock market holdings over the next few months, 13% are doing so because of the low level of interest available on savings at the moment.
Over half of the active investors looking to expand their equity exposure think now is a good time to buy, with an additional 16% positive on the prospects of markets.
Favoured markets
The UK is still in the top spot of favoured markets, with 28% of active investors preferring British companies.
This fits with the trend witnessed over summer months of investors bringing their money home, although emerging markets have held onto second place, with 24% of active investors favouring them.
Annabel Brodie-Smith, communications director at the AIC, said: "With volatile markets, a eurozone debt crisis, creeping inflation, fears of a double dip recession and rising unemployment figures, it’s clearly a worrying time for investors and the general public alike.
"Yet amid all of this, 42% of active investors are continuing to invest, with a further 44% sitting tight and neither increasing nor decreasing their stock market exposure. While none of us can predict the future direction of the market, it’s worth noting that the average investment company is up 19% over the past three years.
"So those investors who kept their nerve even as Lehman Brothers collapsed, have been rewarded."
