1 in 10 under 35s have a stocks and shares ISA
New research conducted on behalf of Fidelity International shows that almost 1 in 3 under 35s believe there to be a worthwhile tax advantage to an ISA yet 77% have never considered a stocks and shares ISA.
Findings from a survey conducted in the UK found that one in three under 35s were saving more than last year yet many are still not taking advantage of the tax breaks on offer to them with an ISA.
Fidelity is encouraging those investors that may not be able to save a lump sum to look at the benefits of a monthly savings plan (MSP). No matter how small the investment, committing to regular saving over the long term can build a sizeable pot and is a good way to make use of your ISA allowance without having to part with a big lump sum of money.
Rob Fisher, Head of UK Personal Investments at Fidelity International, comments "A monthly investment plan is a great way to start investing. It is also a good way to maintain a long-term investment strategy and is a useful way of being disciplined about saving for the future. Investors may be surprised at how much even small amounts can grow over a number of years."
"A monthly savings plan can also be a very effective investment strategy for ISA investors that are in a position to make full use of their ISA allowance each tax year but either don't want to or can't afford to part with a large sum of money in one go." continues Rob Fisher.
An added bonus is that monthly savings can also be more beneficial in the long run. For example, an investor who decided to drip-feed their allowance via a monthly savings plan since ISA's began in 1999 would have invested a total of £87,600 and would have a pot of money worth just over £125k (£125,151) today. When you compare that to a lump sum investor, they would have invested a total of £87,600 and have a pot just above £124k (£124,404), so a monthly savings plan would have worked out slightly better over that particular period.
Rob Fisher concludes: "We hope that a MSP offers a good alternative to those unable to invest a lump sum. Starting early really can make a difference - put simply, it gives your money more time to grow in the market over the long run. ISAs are a fantastic use-it-or-lose-it tax perk with no further tax to pay ever and however you wish to invest, the overriding message is don't delay and start saving now."
More information on ISAs can be found at fidelity.co.uk.