Britons holding small investments are using emotional rather than rational criteria when deciding whether or not they should hold onto their shares, new research reveals.

This is despite the fact that the FTSE showed strong growth of 16 per cent last year, financial protection company AXA found.

A fifth of those questioned in the survey own shares in a listed company, with 28 per cent saying they hold on to these shares for at least three years.

The majority of these retain their shares because they are worth less now and they hope to recoup their original investment, according to the survey.

Others enjoy shareholder perks while seven per cent say their shares have sentimental value because it was bequeathed by loved ones.

Some four per cent of respondents admitted they had no idea why they held on to their shares for such a long time.

While it is encouraging that investors are holding on to shares as part of their investments , it is worrying how many people are investing their savings in the stock market without seeming to have a clear, rational strategy for managing their money , comments Colin Nelson, a spokesperson for AXA.

He advises people to consult a financial adviser to work out their objectives and then to check investments regularly to ensure they are on track to meet those objectives.

There are tools available to help and just by taking this simple course of action investors will be able to see how their money is working for them much more effectively, Mr Nelson concludes.