According to the Investment Management Association despite changes that the government has made to individual savings accounts, the uptake is disappointing. Figures released by the Investment Management Association show a decrease of 40per cent compared with the same period last year. However, the investment market performed well and the most popular sector was the United Kingdom All Companies, which had an 18per cent increase of gross retail sales.
The chief executive of Investment Management Association, Richard Saunders is hopeful that the changes announced in the budget will help restore confidence in individual saving accounts.
Our view
The ISA market is a fickle one. When markets are at an all time high or have delivered excellent returns, this is exactly the wrong time to invest lump sums. We should all invest lump sums when markets have fallen and invest regular premiums when markets are volatile, as they are now.