Retail investors pumped 473 million pounds of new money into UK stocks in the period after putting in 461 million in the previous three months and 516 million from June to August 2010, said Capita Registrars, a unit of Capita Group (CPI.L [1]), which registers the ownership of shares.

However, Japan's devastating earthquake and the subsequent markets correction came after Capita Registrars' reporting period and the impact is likely to be reflected in figures for the current quarter.

Britain's blue chip FTSE 100 (UKX.L [2]) rose 8.4 percent in last three months after advancing 5.8 percent in September to November. The UK benchmark is down 1.6 percent so far in March.

Capita Registrars said retail clients had bought a net 361 million pounds of defensive stocks -- those least affected by changes in the economic conditions -- and 112 million of cyclicals, which have a higher correlation to the performance of the broader economy.

"Until six months ago, investors have spent well over a year almost exclusively focused on buying defensives and selling cyclicals," said Charles Cryer, Capita Registrars chief executive.

"There has now been a distinct change in behaviour, buying both types of shares. This usually indicates cautious optimism over the outlook for equities, rather than suggesting private investors feel shares are especially cheap, or especially risky."