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ISA investors prepared to take more risk says Barclays Stockbrokers

17 March 2009 / by Rachel Mason
Despite market volatility, ISA investors are increasingly willing to take a risk on their money, according to research from Barclays Stockbrokers.

Barclays has found that 89 per cent of ISA investors are planning to invest in products which put their capital at risk.

So far, 66 per cent have already invested into a stocks and shares ISA this tax year, and of those, 45 per cent have invested the full £7,200 ISA allowance.

The majority of investors – 89 per cent – say they are planning to invest in an Investment ISA for the next tax year (2009/2010); 41 per cent believe they definitely will.

"While the ongoing market volatility of recent months has clearly taken its toll on investor confidence, our research shows that there’s still a place for equities in investors portfolios and the overwhelming majority of our customers continue to see value and opportunity in the markets into the next tax year," said Barbara-Ann King, head of investments at Barclays Stockbrokers.

"We have seen a 63 per cent increase in account openings for our Investment ISA compared to the same period last year."

Even though many investors are throwing caution to the wind and going for riskier products, according to Barclays Stockbrokers, there is still a significant number who are unsure about taking an investment risk; 41 per cent said they are becoming more cautious with their investments.

Ms King says there are plenty of options for investors unwilling to take much risk with their cash.

"For the 41% of investors who have indicated that they are more cautious than before about their investments, and are seeking some form of protection for their capital, Investment Notes offer a good opportunity to receive enhanced returns whilst having the comfort of knowing that the index needs to fall from the current levels before their capital will be eroded," she said.

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