Investors in Govt scheme urged not to panic

Savers who invested money in a Government scheme were advised not to panic today after it emerged they may have lost up to 80% of State contributions.

The Irish Association of Investment Managers (IAIM) revealed that €2bn was lost by Irish personal investors in financial products last year.

It said the amount lost was equivalent to all of the new savings contributed by investors during the year, plus another €568m.

Dara Fitzgerald, retail fund manager at the IAIM, moved to reassure those who invested in equity-linked Special Savings Incentive Accounts (SSIA).

“Achieving a return on an investment is still eminently achievable,” he said.

He said equity markets usually rebound after such periods of uncertainty, a factor which pointed in favour of those SSIA investors contributing into equity-linked savings products.

Nevertheless the IAIM warned that share values may fall further, meaning equity returns could still be lower than originally predicted.

Under the five-year SSIA scheme the government contributes one euro for every four invested.

The huge slump in equity markets has led to nervousness among savers who chose to tie their schemes to equities.