ISA savers ‘opting for cash not equities’

ISA savers ‘opting for cash not equities’ March 7

Filed under ISA News by Isa guides | 0 comments

Individual Savings Account (ISA) holders still prefer to hold their assets in cash despite the impressive performance of equity over recent years, market observers have said.

According to Fidelity International, equities have been outperforming cash by as much as 39 per cent since 1999, suggesting that ISA investors should opt for equity when choosing how to invest this year’s allowance.

Fidelity International calculated that, had £3,000 been invested in an ISA since 1999, a total of £26,000 would have been accumulated through cash, while equity investment would have seen the sum grow to £36,000.

However, nearly a third of savers said that they would still choose cash this year, with 29 per cent saying they were undecided.

Commenting on the findings, Richard Wastcoat, the groups UK managing director, said: “The benefit of investing in the stock market over cash for the long term is evident in our analysis.”

Written Exclusively by AdFero for ISA Guides

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