Stop Daydreaming And Start Investing In The New Year

According to recent research undertaken by MORI for the Association of Investment Trust Companies ("AITC"), the British public are a nation of dreamers - they have a dream goal or a dream possession, a little or large luxury that would meet their dreams and aspirations. The only problem is - that's all they have!

Of the 2,000 plus people questioned over 92% have dreamed of a luxury item but 64% of these have done nothing to make their dream a reality. A staggering 90% haven't even bothered to find out the cost.

Sweet dreams Of those who were questioned, over half the population dreamt of buying a new home or a second home in the country or abroad. One in five of the British population would like to take to the coast and own a luxury yacht and despite the recent problems, 13% still dream of taking a trip on Concorde. Clothes and designer jewellery were also popular with 16% wanting to buy designer clothes.

The more unusual dreams included purchasing a castle - 11%, owning their own vineyard - 9%, purchasing a ski chalet, buying their own deserted island or buying a season ticket for their favourite football team. Unusual dreams included owning a recording studio and purchasing a model railway.

How to save for your dream For many of these dreamers, their once-in-a-lifetime purchases could be attained. By taking the time to work out the cost and investing in an investment trust, it could come true.

For example, of those who were only offered the chance of choosing one dream or luxury possession, 12% would like to take a luxury world cruise. If they had started saving 16350 per month in the average investment trust 10 years ago they would now have 16313,943 (Source Hindsight), just under the 16314,000 price of a 90 day round the world cruise on the QEII.

Saving for a new home was the most popular response for 32% of respondents who had a dream goal. In fact, 35% of those who wanted a new home would be prepared to save for more than 10 years. If they had invested a lump sum of 1631,500 in the average investment trust ten years ago they would now be able to put down a deposit of 1636,324 (Source AITC) on the average priced British house of 163102,000*.

Save towards your New Year's Resolution Money is also often the reason why the majority of us don't achieve our New Year resolutions. Of those who have made a New Year's resolution in 2000, 59% didn't complete it because of lack of money.

Using investment trusts Annabel Brodie-Smith, Communications Director of the Association of Investment Trust Companies, said: "If you want to make your dreams a reality it is time to stop daydreaming and start investing for the long-term with an investment trust. Investment trusts are an ideal investment vehicle for saving over the long term for your dream possession."

"Investment trusts have excellent long-term returns and low management charges and allow investors to spread their investment risk by investing in up to 100 different companies. You can buy investment trust shares through your stockbroker or your independent financial adviser. But if you know which trust you want to invest in, you can also buy them directly from the managers. All investment trusts qualify for ISAs so you can take advantage of these additional tax benefits."

For further information on investment trusts call the AITC for a copy of the FREE its for investment trusts factsheet on 0800 085 85 20

Technical details

• The research was completed by MORI Financial Services. The fieldwork was conducted among 2026 adults between the 9th and 13th of November.
• All figures quoted for investment trusts are share price mid-market to the end of November 2000.
• * 163102,000 for average price of British house sourced from ODPM (DTLR) house price series.
• The Association of Investment Trust Companies was founded in 1932 to represent the interests of the investment trust industry - the oldest form of collective investment. Today, the AITC is the primary source for information and statistics on investment trusts. The AITC has 302 members and the industry has total assets of approximately 16381.8 billion.