Because they offer personalization and advice, separate accounts will lure a good portion of the trillions of dollars sitting on the sidelines back into the equities market, a report from TowerGroup predicts.

Many investors have become extremely wary of the markets, as proven by a tremendous increase in assets in cash or cash-equivalent accounts, according to TowerGroup’s report, "The Money’s Back Under the Mattress, and it Ain’t Coming Out Anytime Soon." Assets in such accounts have ballooned 72% between 1998 and 2003, from $3.6 trillion to $6.2 trillion.

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