Investors take advantage of ISA allowance

Leading discount broker Willis Owen has reported a 20% increase in fund ISA investments during the last tax year compared to the year before.

Consumers continued to make use of their ISA allowance and invest for their future despite the current squeeze on their finances. And as investors look for returns on their savings to outpace inflation, the income sector was the most popular in the final month of the tax year. The top selling funds via Willis Owen included the Invesco Perpetual High Income Fund and the Artemis Income Fund. 

Alan Easter, Director of discount broker Willis Owen, said: "It is a tough time for consumers, who are understandably focused on paying down debt. But it is very positive to see that many still recognise the need to invest. With CPI inflation still double the 2% target, and the Bank of England remaining unwilling to put economic growth at risk by raising interest rates to counter it, people are seeing their hard-earned wealth eroded by savings accounts.

"Clearly the attraction of the tax-free wrapper offered by investment ISAs, and the potential for growth, is convincing many that leaving their money to stagnate in a high street bank account is not the option for them."

Willis Owen is urging investors to make use of the latest annual ISA allowance, which is now £10,680. Or, investors can use Willis Owen to drip feed up to £890 a month into the market.

Alan added: "Those looking for investment ideas should take a look at our Price Pledge funds. We have chosen a selection of funds from the equity income, absolute return and cautious managed sectors, which we think will deliver growth over the next 12 months. If the value of your fund goes down we will refund all our charges.  

"We want to be more transparent with people about the charges on their money and also show that we are on their side in sharing risk with them as well as reward. Our Price Pledge will remain open to investors until the end of the month.

"But the most important message for investors is to take advantage of the new ISA allowances as soon as possible and not leave it until the end of the tax year. "If you don't have a lump sum to invest then drip feeding money into the market is a great way to build up your savings pot."