Stocks and shares ISAs become more popular than cash ISAs
Stocks and shares ISAs have become more popular than cash ISAs for the first time according to early findings from TD's Global Investor Confidence Study.
The independent survey into current and future investor sentiment shows that over three-quarters (77%) of respondents had invested in stocks and shares ISAs in the last year, compared to 53% who have invested in a cash ISA.
This is the first time in the six years TD has been studying investor confidence that sentiment has swung in favour of stocks and shares ISAs. In last year's survey, two-thirds (66%) of respondents said they had invested in a cash ISA compared to 47% who had invested in a stocks and shares ISA. Meanwhile, back in 2008 - just before the Base Rate fell to it's current level of 0.5% - 71% of repsondents had invested in a cash ISA compared to 58% who had invested in a stocks and shares ISA.
Stuart Welch, CEO, TD Direct Investing comments: "In the six years we have been studying investor confidence ISAs have always been the most popular investment option among respondents. However as we enter into our fourth year of low cash returns in the UK, share products continue to increase in popularity and this has tipped the balance in favour of stocks and shares ISAs among the respondents to our latest Global Investor Confidence Study."
A stocks and shares ISA can be used to hold more than just equities, so TD has looked at the most popular funds customers are currently holding in their TD Trading ISA.
Most popular fund holdings in a TD Direct Investing Trading ISA
Fund Name
1 Blackrock Gold & General Acc
2 Aberdeen Emerging Markets A Acc
3 Invesco Perp High Income Inc
4 JP Morgan Natural Resources A Acc
5 First State Greater China Growth A
6 Invesco Perpetual Income Acc
7 First State Asia Pacific Leaders A Acc
8 Legal & General UK Index Acc
9 Invesco Perpetual High Income
10 First State Indian Subcontinent A Acc
With no surprises at the top of the table Blackrock's Gold & General Account maintains its number one position having been the most popular ISA holding among TD customers for the past four years. The value of gold was up by over 25% on last year's price4 and continues to be viewed as a safe haven particularly when other sources of comfort, notably the Dollar and the Swissie (Swiss Franc), have had a turbulent time recently.
Other interesting trends include the fact that Asia remains a popular choice amongst TD's ISA customers with Aberdeen Emerging Markets, First State Greater China Growth, First State Asia Pacific and First State Indian Subcontinent in second, fifth, seventh and tenth place respectively.
Stuart Welch, CEO, TD Direct Investing comments: "We have seen a radical shake up in the composition of our customer's top ten ISA holdings this year with the UK and Europe more prevalent than last year's favourite: the emerging markets' fund. The indexes, such as the FTSE, have been growing steadily this year despite the turbulent economic backdrop and our customer's may be hopeful for the long term prospects of the UK and European markets."
TD No ISA or SIPP Admin Fee Guarantee
TD Direct Investing offers a wide range of investment choices to help investors diversify their portfolios and this year TD is offering a no admin fee guarantee5 which applies to all new and existing customers who open a TD Trading ISA or TD SIPP account before April 30 2012.
No minimum balance is required on the TD Trading ISA and for new TD SIPP accounts, the no admin fee guarantee will apply to those that have a value of £16,000 as at 30 November 2012. The offer means customers can potentially save £30 + VAT on their ISA and up to £200 + VAT on their SIPP this tax year (terms apply).
The value of investments held in an ISA or SIPP can fall as well as rise and are not guaranteed. You may get back less than the amount invested. In a SIPP this could affect the value of income you receive in retirement. The tax treatment of the ISA and SIPP depends on the individual circumstances of each customer and may be subject to change in the future.