The average amount investors say they have in equities has fallen from £51,000 to £23,000 in six months.

The Lloyds TSB wealth management study revealed that of those who had made changes to their investments during the past six months, 44 per cent moved some or all of their money into more cautious investments.

Five per cent moved their entire portfolio.

Some 14 per cent kept their stock market investments the same but put money into other areas while fewer than one in 10 ploughed more money into equities in the hope the markets would rally.

Worringly, fewer than one-third took action based on professional guidance from their financial adviser or bank.

Nathan Moss, managing director of wealth management at Lloyds TSB, said: “Stock market investors are ditching the FTSE in droves as confidence slumps. However, this approach could be costly in the long run.

“It is essential that investors seek professional advice before making an impulse decision that they could regret later when the market rallies.”

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