ANDREW Lang, the nineteenth-century the Scottish poet, was onto something when he observed: “An unsophisticated forecaster uses statistics as a drunken man uses lamp-posts – for support rather than for illumination.” With this in mind it would be a mistake to lean too hard on the statistics garnered from Interactive investor’s website survey.
Yet, there’s plenty to learn and it can pay to see what others are doing – even if you choose to do the opposite. As Socrates almost said: An unexamined tax wrapper is not worth using.
THE KEY FINDINGS ARE:
■ The number investing in cash Isas has stayed about the same. The numbers investing into self-select Isas has risen by 16 per cent, this has been at the expense of managed funds.
■ People buying their Isas from fund supermarkets are in the majority, with 53 per cent doing so. The number buying from fund managers directly has fallen again.
■ The number of investors happy with the performance of their Isa has fallen by 28 per cent.
■ Saving for retirement is the top reason to invest in an Isa, with 40 per cent choosing this – a rise of 12 per cent on last year.
■ The UK is still the most popular investment area, rising by 13 per cent. The US has shown the biggest increase, rising 60 per cent.
■ 90 per cent intend to take out an Isa this year.
■ For those taking out a self-select Isa the most popular choices are UK shares, international shares, investment trusts and funds.
■ Over 74 per cent are aware of Junior Isas but only 14 per cent have an intention to invest in them.