Despite volatile markets, existing Stocks & Shares ISA investors are still planning to place 89 per cent of their ISA allowance in to risk-based investments next tax year.
As much as two-thirds of investors opened an Investment ISA this tax term. Of those, 45 per cent had invested the full £7,200 allowance, according to a survey by Barclays Stockbrokers.
Barbara-Ann King, head of investments at Barclays Stockbrokers, said: “While the ongoing market volatility of recent months has clearly taken its toll on investor confidence, our research shows that there’s still a place for equities in investors portfolios and the overwhelming majority of our customers continue to see value and opportunity in the markets into the next tax year.”
Equities remain the most popular type of investment.
Ms King explained: “Our clients continue to favour equities when it comes to trading and we have also seen a significant increase in clients investing in iShares, with the FTSE 100 being the most popular.”
Even with so many continuing to invest, 41 per cent admitted to being more cautious then they were in previous years – resulting in Barclays Stockbrokers seeing a 187 per cent increase in investment notes this year compared to the same period in 2008
The increase is not surprising, considering Barclays most recent investment note offers a return of 55 per cent if the funds are left untouched for five years and stocks never fall 50 per cent below their starting point.
“For the 41 per cent of investors who have indicated that they are more cautious than before about their investments, and are seeking some form of protection for their capital, Investment Notes offer a good opportunity to receive enhanced returns whilst having the comfort of knowing that the index needs to fall from the current levels before their capital will be eroded,” Ms King said.
Twitter: My Finances
Join the conversation at #news_myfinances