Funds Isas outsell stocks and shares Isas by ten to one particular

‘Super Isa’ savers play safe by putting their income overwhelmingly into income rather than investments in the very first month of the new, enhanced tax-free of charge programs

  Photograph: Alamy

Savers taking advantage of the new £15,000 “super Isa” place ten occasions much more cash into money than into investments final month, figures display.

Even though virtually £5bn was deposited in income Isas in July – the very first month in which savers could consider advantage of the new restrict – only £520m flowed into investment Isas, according to information from the Investment Management Association (IMA), the trade entire body for fund managers.

Ideal-promoting money sectors all round, which includes Isas

Rank (July)

Rank (June)

Net retail sales

Uk Equity Income








Strategic bond




Mixed investment 20-60% shares




Asia Pacific Excluding Japan




Nonetheless, the IMA’s figures do not capture Isa income that is invested in shares, investment trusts and money purchased through specific “fund stores”.

Even though the £520m that flowed into “new Isa” investments was far reduce than the amount deposited in money Isas, it was a lot larger than in the exact same time period final yr, when savers added just £125m to investment Isas.

Edward Johnson of Willis Owen, the fund store, mentioned: “The surge in [investment] Isa income in contrast with last July supports our prediction that we would see a huge influx of income into the new Isa.”

The business mentioned the most well-known fund among its buyers was the new Woodford Equity Revenue fund, launched in June by Neil Woodford, popular for his accomplishment at Invesco Perpetual. Mr Woodford’s fund outsold its nearest competitor by a element of 4, Mr Johnson explained.

He extra: “At Willis Owen we’ve observed that the ‘Woodford effect’ demonstrates no signal of fading, with sales of his new fund nearly 4 times as huge as our next most well-liked fund in July.

“The pattern seems to be to have been replicated nationally, with the Uk Equity Revenue sector performing properly.”

Here are his customers’ most common fund alternatives in far more detail.

Willis Owen’s leading selling funds in July 2014

1. Woodford Equity Cash flow

2. Threadneedle United kingdom Equity Earnings

three. Henderson Strategic Bond

four. Jupiter Merlin Growth Portfolio

five. Fidelity Moneybuilder Income

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