Structured products are the best bet for income-seeking investors in the current stock market climate, finds Virgin Money.

According to the Virgin Money Investor Intentions’ Index, a nationwide survey of independent financial advisers, 27 per cent would choose structured products when selecting the best option for cautious investors looking for income from a lump sum over five years.

Corporate bonds took second position with 23 per cent and a further 15 per cent selected bank and building society accounts despite the current low interest rates on offer and the tax implications.

Traditional UK income funds were chosen by just nine per cent and investment bonds were the choice of 11 per cent of advisers.

Virgin Money spokesman Grant Bather says, ‘IFA confidence is on the rise and our index suggests that investors should now start to move away from the poor returns, but relative security, of cash in favour of better returns in other sectors.

‘Although the KeyData collapse will be a major test for the market and advisers’ confidence, structured products are seen as the best bet for income despite the Lehman’s disaster last year and concerns over investors’ cash.’