Private investors channelled approximately £1 billion into the stock market in August and September, it has been claimed.

Research by Capita Registrars found that the funds were invested into equities as many looked to capitalise upon a recent downturn in the market, reports Reuters.

John Roundhill, director of the firm, said that share prices fell by 13 per cent between early summer and the middle of August, while those waiting for a correction were proved right.

The correction was short-lived, but private investors swiftly took advantage of the opportunity to re-invest some of their money, he remarked.

In related news, the Association of Investment Companies recently stated that first-time investors are more worried about their lack of knowledge than the risks involved.

A survey by the organisation revealed that 32 per cent of potential investors admitted they did not know enough about the stock market to invest with confidence.