Press Release

Moneyspider.com

PRESS RELEASE

FOR IMMEDIATE DISTRIBUTION

23 OCTOBER 2007

MILLIONS OF BRITS PARALYSED BY FINANCIAL PHOBIA BUT LIKE ARACHNOPHOBIA THERE IS A CURE, RECKONS MONEYSPIDER.COM

• Financial phobics get the sweats when it comes to the markets
• Millions affected - but a cure likely to equal being better off
• Moneyspider.com simplifies the investment process
• And can reduce anxiety associated with equity investment

Financial phobia £

- a psycho-social condition which causes individuals to avoid dealing with personal finances. Symptoms include anxiety, resulting in increased heartbeat and feelings of physical illness

Arachnophobia

- one of the most common phobias, affecting up to one fifth of the UK population. Symptoms include excessive sweating, rapid breathing, a quickened heartbeat, nausea and dizziness

FINANCIAL phobia is affecting millions of Brits and is likely to be costing them a packet over the longer term, reckons online investment funds analyst Moneyspider.com.

But like arachnophobia - a fear-driven condition that also affects a significant percentage of the population - financial phobia can be easily cured, says the analyst (see note 1).

Defined as a 'psycho-social condition which causes individuals to avoid dealing with personal finances' (2) Moneyspider.com today reveals that up to 20 million adults in the UK have no investment funds at all.

A fear of investments is likely to be shared by up to a fifth of the population (3), but Moneyspider.com's Tony Ahearne warns that in the longer term, an aversion to stock market based investments will cost people dear.

"Gaining exposure to stock market-based investment schemes is a basic financial planning necessity - many ordinary savings accounts barely keep pace with inflation, and millions of people are potentially losing out on the opportunity to build up a nest egg for the future because of an aversion to basic investing," he says.

According to the latest Inland Revenue data (Sept 07), 17.3 million people in the UK hold equity Isas, with a further 3.8 million investors still holding on to Pep schemes. An estimated 3.6 million investors also have direct share holdings.

But with a total of 47 million UK adults, clearly there are many millions who, either through fear or apathy, remain uninvested.

"The recent round of market volatility will doubtless have made many investors nervous, but markets are cyclical as we know, and investing for the longer term has historically been a sound way to build one?s wealth outside of the confines of ordinary savings accounts," says Ahearne.

And while financial phobia may not - like a fear of spiders - be cured overnight, there are ways of helping those who suffer from the condition.

"Many investors have a financial phobia because they do not know how investment products work. But this is where Moneyspider.com can make a big difference.

Fundamental to Moneyspider.com's service is an easy to follow ratings system which indicates how the investor's funds are performing. The unique Moneyspider Rating® System (see Editor's Notes) ranks every fund from A (very high rating) to E (distinctly poor).

"In addition to rating each fund our personalised reports, updated on a daily basis, show the current value of a portfolio and give details on the performance of an investor's funds compared to others in the same sector and in other sectors.

"It is an invaluable tool, and for the typical financial phobic, should be a source of much comfort," says Ahearne.

(1) Financial Phobia, University of Cambridge report, Sept 07

(2) Ibid

(3) Ibid

- Ends-

Editor's notes

Moneyspider was launched in April 2004 and is a totally independent investment research and information company for private investors. Moneyspider constantly monitors all 2,000 or so funds available to UK investors and provides online personal reports that are updated on a daily basis showing current valuation and performance of all funds in one place.

The Moneyspider Rating® provides a unique assessment of the performance of each fund measured against four key parameters:

• Sector ranking: a comparison with all other funds in the same sector as your fund (based on the sector definitions used by the Investment Management Association).
  
• All funds ranking: a comparison with all other 2000 or so Unit Trusts and Open Ended Investment Company funds available to UK investors.
  
• FTSE 100: a comparison of the total return of the fund with the total return of the FTSE 100 index (comprising the UK's 100 largest companies), providing a consistent benchmark for each fund.
  
• Cash: a comparison of the fund's performance with the return from an equivalent amount deposited in a 90 day non-high interest access account.

Moneyspider is an appointed representative of Anthony, Bryant & Company (Investment Consultants) Limited of 25 Eccleston Square, London SW1V 1NS, which is authorised and regulated by the Financial Services Authority. The contents of this press release are not intended, and should not be construed as, advice, a recommendation or as an inducement to buy or sell any investment. Moneyspider relies on information regarding investments that is provided by third parties and accepts no liability (including that arising from negligence) for the accuracy of such information.