Investment experts have called for improvements on the ratings system for funds in order to help consumers.

The Committee of European Securities Regulators (CESR) recently outlined the methodology to producing Key Investor Information (KII), with each fund being given a risk rating on a scale of one to ten.

However, Julie Patterson, director of authorised funds and tax at the Investment Management Association (IMA), is concerned that half of UK-authorised funds would have the same rating, meaning it will be hard for investors to assess their options.

She said: We welcome CESR's acknowledgement that the methodology will 'require work in the future to reflect developments in the markets in an appropriate and timely manner'.

Given the evidence already provided and changing market conditions, we believe the methodology should be refined before KIIs are required to be used.

The IMA recently welcomed the decision by the government to maintain the capital gains tax threshold at £10,100, suggesting it would encourage people to save for the long term.