Buy now while equitiesare still cheap

Precise market timing is impossible but share prices look to be near a low. A long-term approach to investment is always advisable but for the next few years at least income funds look to be the likely winners

UK equity investors had little to cheer them as they have watched their portfolios and Isas fall in value for three consecutive years. The FTSE 100 is nearly 50% below the peak of 6930 it reached at the end of 1999. As a result, net sales of Isas dropped 28% last year from £6.7 billion in 2001 to £4.8 billion. Net sales of all funds to retail investors fell 11% from £9.3 billion in 2001 to £8.3 billion in 2002. But private investors should not lose faith in equities. With the FTSE having fallen nearly 50% and valuations of many shares looking increasingly attractive, now is the time inv...