The Association of Investment Trust Companies (AITC) believes that a lack of confidence in equity markets has hit purchases of ISAs through investment trusts. In the second quarter, purchases of trust ISAs through the trust itself, and fund management groups fell by 10% from £21.7 million in the same period last year, to £19.6 million this year.
The AITC believe that the investment trust industry is continuing to improve, but the whole financial services industry needs to work together to rebuild trust in equity investment, and financial education must play a key role.
Our view
We do not believe this is about low confidence in equities. The use of Investment trusts we beleive is a higher risk strategy than traditional ISA investments of investment manager units trusts and OEICS (open ended investment companies).
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