Over fifties investors positive on outlook for UK stockmarket

With over 50s now enjoying the ability to save up to £10,200 in their ISA, new research from Fidelity International reveals that 54% of over 50s ISA investors with more than £10,000 in savings have a positive outlook on the stock market.

In addition, almost a third (30%) of cash rich over 50s feel positive about the potential future returns from investing in stocks and shares, despite any possible short term volatility in the market. One in five (21%) believe that with the base rate and interest rates so low, the only way they have the potential to receive a decent return on their savings is by investing in stocks and shares.

Rob Fisher, head of UK personal investments at Fidelity International comments: "After a turbulent 18 months, our research indicates that the over 50s are now feeling far more positive towards the stock market. They recognise that with interest rates so low it really could be the best place to achieve good returns on their money over the medium term...plus that using their ISA allowance is vital to maximising their post tax returns".

"Encouragingly, from the morning of October 6th (the first day of the larger £10,200 ISA allowance) we have seen some of the highest customer call volumes handled by our UK phone teams so far this year, comparable to the normal end of tax year rush. In addition the volume of ISA top-up and new applications received has been nearly 4 times larger than the equivalent period last year. Income funds like the Fidelity MoneyBuilder Income fund have proved extremely popular as have UK equity funds, with Fidelity Special Situations and MoneyBuilder Index among the early favourites. Emerging market funds have also attracted investors with more appetite for risk.

Fidelity suggests five key things that eligible investors need to know:

1. The full £10,200 can be invested in a Stocks & Shares ISA or you can invest up to £5,100 in a Cash ISA and put the balance in a Stocks & Shares ISA. This is an increase of £3,000 for Stocks and Shares ISAs and £1,500 for Cash ISAs.

2. You can open one Cash ISA and one Stocks & Shares ISA in each tax year (with combined limit of £10,200). These can either be with a single ISA provider, or with 2 different ISA providers.

3. If you have already invested in an ISA this tax year, you can top it up to the new limit.

4. If you have already invested in a Stocks & Shares ISA this tax year, you don't have to invest in the same share, fund or even asset class, as long as you use the same ISA provider. For example, if in April this year you invested your ISA in a fixed income fund through a platform like Fidelity FundsNetworkTM, you can put the extra £3,000 in a UK equity fund if you are feeling more confident about the stock market.

5. If you are unsure where to invest your ISA but don't want to lose the extra tax allowance, you could put it in an ISA Cash Park. You can then decide at a later date where to invest the money.