ISA POPULARITY REACHES HIGHEST LEVEL

Results of IMA’s “Attitudes to Investment Funds” survey

Results of IMA’s 2003 “Attitudes to Investment Funds” survey shows that more investors than ever before are taking advantage of the ISA wrapper. 57% of respondents had already taken out an ISA for the 2003/04 tax year when questioned in November 2003, an increase of 5% from the previous year and the highest total since the introduction of ISAs in 1999.

The survey also highlights that those taking advantage of ISAs were predominantly basic rate taxpayers (55%) compared to only 18% from the higher rate bracket. 

The most popular form of ISA investing continued to be through Mini ISAs (53%), and although cash was again the favoured Mini ISA component, accounting for 77% of responses, the popularity of the stocks and shares component returned to levels previously seen in 2001 (36%).

Other results show that investors stand firm during periods of stock market volatility, with 64% indicating they would hold onto their investments compared to only 5% who would sell. It is also encouraging to see that during such periods of instability investors continue to diversify their holdings, with respondents investing on average in 4.9 funds across 4.2 fund management companies. 

Helen Stephenson, Communications Officer at the IMA commented:

“Once again investors show that they are in it for the long term by riding the storm during periods of market instability. The return to equity ISAs, in particular, demonstrates a growth in confidence. 

The increasing popularity of ISAs among basic rate taxpayers this year is proof of what a well designed, simple, accessible product can achieve. Going forward IMA will continue to lobby the Government for the creation of a single regulatory framework for pensions, ISAs and the Child Trust Fund in order to streamline a somewhat disjointed long-term savings policy.”

A copy of the survey “Attitudes to Investment Funds” is attached.

-Ends-

For further information, please contact:

Helen Stephenson, Communications Officer, IMA, 020 7831 0898

Out of hours contact:

Mona Patel, Head of Communications, IMA, 07834 089332

Notes to Editors:

The Attitudes to investment funds survey (previously known as the UTIS Survey) began in 1993 and started  as a survey of 500 callers to the Association’s information line, the Unit Trust Information Service (UTIS). This year the sample has changed and is formed from 173 callers to the information line and 327 from Continental Research’s Million Plus Panel (MIPP), a database of over one million UK adults. The research was conducted in November 2003. 

65 Kingsway London WC2B 6TD 

Tel: +44 (0) 20 7831 0898 Fax:+44 (0) 20 7831 9975 

www.investmentuk.org 

Investment Management Association is a company limited by guarantee registered in England and Wales Registered number 4343737.  Registered office as above.