ISA Investors Favour Income Funds

It has been one month since the ISA allowance was increased to £15,000 and investors were given greater flexibility to transfer their ISA savings between cash and shares

Emma Wall 31 July, 2014 | 10:15AM

It has been one month since the New ISA was introduced allowing investors to shield up to £15,000 a year from the tax man. The Chancellor upped the tax-free savings allowance in his ‘Budget for savers’ in March, and introduced greater flexibility for transferring accrued ISA savings between cash and stocks and shares.

According to fund platform Hargreaves Lansdown income funds have dominated the ISA charts, with investors favouring home-grown equities which pay a dividend.

It has also been a year since AIM shares were able to be held in an ISA wrapper. Trading in AIM stocks soared last summer, according to fund supermarket Alliance Trust, in the first month that AIM stocks were able to be held in ISA wrappers there was a 150% increase in AIM trading on the platform.

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The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

Securities Mentioned in Article

Security NamePriceChange (%)Morningstar
Rating
Artemis Income R Inc1.88 GBP0.14
BNY Mellon Global Income GBP Inc206.40 GBP-0.16
Threadneedle UK Eq Inc Rtl Inc GBP0.81 GBP0.01

About Author

Emma Wall  is former Senior International Editor for Morningstar

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