Investors Invest in ISAs

Investors Invest in ISAs

A record number of investors are putting their savings into ISAs, according to HM Revenue and Customs’ ISA statistics.  In the first three quarters of the tax year period 2007/8, savers subscribed the most money into ISAs since the scheme was created.  More people placed money in mini stocks and shares ISAs than ever before, with 1.4 million accounts subscribed to, along with over 9 million investors choosing cash ISAs for their cash savings.

The first three quarters saw money invested in mini stocks and shares ISAs rise by over 15 per cent year-on-year to break the £2bn threshold for the first time.  Monies saved in cash ISAs rose by 5.3 percent to nearly £18.1bn and subscriptions made to maxi ISAs were at their highest level for five years, with £5.6bn invested.

Our view

There was a huge shift away from stockmarket related ISAs in the first quarter of 2008.  This was exactly the time when investors should have been looking at stockmarket related ISAs.  Remember: buy when the market is low.  Sell when the market is high.

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