Investors are turning to long term stocks and shares ISAs as the economy remains uncertain, TD Waterhouse has claimed.
Research from the execution-only broker shows that investors are choosing to hold longer term investments within their ISA as returns from cash ISAs remain low.
Top of the most popular fund holdings in a TD Waterhouse ISA is the BlackRock Gold and General fund, while the Invesco Perpetual High Income fund and Gartmore China Opportunities come in second and third respectively.
Commenting, Angus Rigby, CEO at TD Waterhouse said: "Commodities remain a popular choice amongst TD Waterhouse investors following continued volatility of gold and other natural resources and uncertainty around the economy this year.
"Emerging markets also appear to be increasingly popular this year with new entry Aberdeen Emerging Markets at number six, joining old favourite Gartmore China Opportunities which remains the top third choice among TD Waterhouse customers for the second year in a row."
The data is backed up by the findings of the TD Waterhouse Investor Confidence Index for 2009/10, which found that 19 per cent of investors expect precious metals and commodities to perform best in 2010, followed by 18 per cent who believe the same for Asian markets.
Mr Rigby adds: "Our data shows that this year's most popular ISA funds are those offering long term investment, and this concurs with the results of the TD Waterhouse Investor Confidence Index 2009/10 which indicated that respondents had mixed views on the prospective 'shape' of the UK economy."
Those results found that more than a third of investors believe that the UK economy will be W shaped this year, and that there will be a double-dip recession, while 37 per cent believe it will be V shaped and that the UK is in recovery mode.
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