ISA sales soar as the over-50s use allowances
SALES of ISAs soared last month, boosted by the over-50s taking up their increased £10,200 tax-free allowance.
Figures from the Investment Managers Association revealed gross ISA sales hit £965m in October. This was the highest recorded figure in any month since ISAs were launched in April 1999.
Net new investments in equity ISAs reached £301.1m, almost double September’s total of £162.3m. It was also the highest month since June 2000 for ISA sales outside the traditional selling season of March to April.
Property became the best-selling retail sector accounting for £367.6m of net retail sales – the highest since May 2007.
This was in contrast to last November and December when property was the lowest selling sector.
Richard Saunders, Chief Executive of the IMA, said: “October was the first month in which the over-50s could use their ISA allowance – and it proved to be the highest ever October for gross ISA sales. ISA sales are clearly heading for their best year since 2002.”
The most popular fund choice for ISA investors was the IMA Cautious Managed Sector.