Those holding investments remain confused about the various types of investment, new research shows.

When surveyed by Invesco Perpetual, two-thirds of people who plan to make an investment in the next year were unable to correctly identify the difference between bonds and equities .

The majority of those who currently hold investments (77 per cent) were also in the dark about this, according to the study conducted by research firm Gfk NOP.

This is despite the fact that by the end of October 2005, total net retail sales of these two types of investment topped £4 billion, Invesco Perpetual points out.

Currently there is a huge demand from consumers who want to invest in bonds and equities, comments the marketing director at the provider, Rick White.

He says people need to be educated because it is really important that people understand what they have invested in and what the reason for the investment is.

There is room for both bonds and equities in a portfolio, but people must understand the principles behind them to decide what proportion they need of each asset class, Mr White adds.

This is needed in order for people to make informed decisions about their investments, he concludes.

A subsidiary of global investment manager Amvescap, Invesco Perpetual is one of the UK's largest providers of personal equity plans and individual savings accounts .