This is saving, not investment. Get it right!

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FT.com / Investments - Fund investment hits record levels.

The FT notes:

Private investors bought into funds at record levels towards the end of 2009.

Figures released on Tuesday by the Investment Management Association (IMA) show that net retail fund sales in November 2009 rose, month-on-month, to £2.4bn — the eighth consecutive month in which inflows from private investors topped £2bn. T

But let's be clear: buying second hand equities is not investment. No new economic activity results (except a rake off for the City). No productvity is promoted, no new asset results.

This is saving.

Saving is not the same as investment.

Surely the FT should know that and stop promoting the lie that the City likes to promote - that what they do when promoting saving is useful for the greater economy - when too rarely that is the case.