Investment funds up, Isa sales down

06 February 2006
Sales of investment funds exceeded £350 billion last year, despite the individual savings account (Isa) market falling by ten per cent, new figures reveal.

Isa net sales fell to £1.8 billion, which is the lowest it has been since 2000. However, total retail sales increased to £8.5 billion, which was the highest figure since the turn of the century.

A spokesman for the Investment Management Association (IMA), which released the figures, said that investors remained hesitant about the equities market due to three years of turbulent stock markets.

He told the Scotsman: "Investor confidence has been a problem. It takes a while for the message to filter through that the markets have turned the corner."

Loss of tax incentives have also caused this market decrease, according to analysts.

Nevertheless, Isa sales began to grow towards the end of the year with December's figures standing at £131.2 million – up from the £78.8 million in November.

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