Investors Save £2.5bn in ISAs

In the 12 months to April 5, investors poured £2.3 billion into their ISA portfolios, more than £1 billion more than the previous tax year

Emma Wall 30 April, 2014 | 3:25PM
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Investors poured £2.3 billion into their ISA portfolios in the 2013/14 tax year, which ended at midnight on April 5. True to form, thousands of investors left their ISA allocation until the last minute – with £358 million of ISA cash being deposited in the final five days, higher than any other full month in the tax year.

The total invested last tax year was an impressive £1 billion more than the 2012/13 tax year – indicating that investor confidence is on the rise. Buoyant markets and significant inflows led total funds under management in ISA portfolios hit a record high in the last month of the tax year, to £784 billion.

Investors deposited £2.3 billion in open-end funds across ISA and non-ISA portfolios in March – with equities continuing their dominance as the most popular asset class. Nearly £1 billion was invested in equity funds last month, 10 times that which was deposited in March 2013. During 2012, the FTSE 100 index of blue chip UK companies was volatile – losing considerable value in June 2012. This led investors to be wary of equities when allocating that year’s ISA allowance. But last year’s considerable FTSE gains, coupled with the rise of other developed market equities and continued low interest rates, have driven UK investors into equity funds.

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Emma Wall  is former Senior International Editor for Morningstar

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