UK Business Listings

Effect of Stock Markets on Individual Savings Account

The unpredictable stock markets have drastically reduced the individual savings account (ISA) of the Britons and it is estimated that the retail assets of private investors fell by 7% during January due to the disorder in the stock market. But, the experts warn that those individuals who have not used their allowance within this financial year will lose the tax relief. Recent sales figures for open-ended investment companies and unit trust gives out a depressing statistics as the amount invested by the private investors nearly halved when compared to last year.

According to Investment Management Association, the net retail sales have come down from 912 million pounds to a meager 550 million pound. The most preferred investment tool of the public are bonds as nearly 184 million pounds worth bonds had been purchased by the private investors. On the other hand equities and non-secure investments are facing the brunt as the investors are not in a mood to take any risk. It is also estimated that nearly 68 million pounds were flowed out of ISA during this season and the individuals are no more interested in carrying their allowances for tax break. Experts state that the Britons are paying 382 million pounds as tax which can be saved by depositing their funds in tax-efficient vehicles.