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ISA investors taking more risk with adventurous funds

11 April 2008 / by Rachael Stiles
Investors have been moving further afield towards putting their ISA allowance into increasingly aggressive funds, Skipton Financial Services has found.

In the 2007/2008 tax year, Skipton saw a significant shift as investors started putting their tax-free savings into its execution-only fund, with Gartmore China Opportunities, JPM Natural Resources, Allianz RCM BRIC Stars and Neptune Russian & Greater Russia taking over from the previously popular UK equity funds.

Considering the current global financial market is less than stable as a result of the credit crisis, and emerging markets do not offer the same security as those funds that UK investors were putting their ISA allowances into last year, which were primarily more traditional British or European companies, Skipton says it is "remarkable" that investors do not seem deterred, rather, they are taking the opportunity to invest in more environmentally friendly and risky opportunities as they become available.

"It is remarkable that, despite the volatility of the global equity markets, our clients are putting their faith in emerging markets and commodities funds," said Simon Holt, managing director of Skipton Financial Services.

"Clearly the more sophisticated investors understand the buying opportunities and the benefits of buying cheaply into long-term growth potential. It will be fascinating to see in a year's time where Skipton FS investors think the next big money making opportunity will be."

© Fair Investment Company Ltd