Many 'absolute return' funds are giving investors a false sense of security and are no safer than equities, experts warn. Adverts talk about how "absolute return" funds deliver positive returns in all market conditions, and highlight their potential for reducing risk – reassuring words for nervous investors. But a leading financial adviser is warning that some are seriously underperforming, that fees are too high and the sector should be renamed to avoid confusion.

Equity investors should look for income anywhere but in the UK with its sluggish economic growth. By contrast, most Asian economies – and even the US and Europe – are on the up

Where in the world should you look for income at the moment? That is the question equity investors should be asking themselves.

The wave of dividend cuts over the last few years, particularly by the banks, means that dividends are concentrated in just a few companies: indeed the top-five payers – BP, Shell, GlaxoSmithKline, Vodafone and HSBC – account for half the total dividends in the UK market. A dividend cut from any of these – and, given that more than 200 companies did just that in 2009 means it can never be ruled out – could therefore have a big impact on the income from the UK market.

In all the economic turmoil it's tempting to hide your cash under the mattress. After a 16% fall in the FTSE in just one month, we explore the safe havens for your money, and how the bullish can best profit from a recovery

Homes for the pessimists

Under the Mattress Probably not the best place. It doesn't pay interest, inflation eats away at it, and, if you have a burglary, standard insurance only covers the first £500 stolen. But, if you really do want to keep your money at home, the four most common places to hide it are, according to a Halifax survey, (a) under the mattress (b) in the sock drawer (c) in the top of the wardrobe and (d) in the bedside table. A home safe, such as the Chubb MiniBanker, costs around £500, but insurers won't pay more than the standard sum, even if it's in a safe.

FSA says trade in life policy settlements contains 'major flaws' in its marketing and it has taken action against several firms. The Financial Services Authority has warned that it has "significant concerns" about the way an increasingly popular type of high-yielding investment is being promoted in the UK and has told independent financial advisers that it will closely monitor sales.

Traded life policy investments (TLPIs, otherwise known as senior life or viatical settlements), which invest in US life insurance policies, have been promoted to UK investors on the basis that they pay a predictable and far higher yield than cash savings, and do not suffer the same peaks and troughs as stockmarket investments or savings effected by economic cycles.