Investment sales could soar thanks to the new coalition, according to research from Virgin Money.
Despite David Cameron and Nick Clegg’s controversial plans to raise the Capital gains Tax to around 40 per cent Virgin Money's Investors Intentions Index shows that financial advisors think their plans will have a positive impact on the industry.
The research shows 17 per cent of advisers still believe investment sales will continue to rise following the General Election while 51 per cent believe the result will make no difference. And advisers polled after David Cameron became Prime Minister were more optimistic – 30 per cent said they expected an increase in investment sales.
Around one in three IFAs surveyed believe clients will increase their investments. Analysts predicting that the planned CGT rise will make investments in unit trusts and OEICS less attractive but say it is potentially good news for other investment products such as investment bonds.
Virgin Money spokesman Grant Bather said: "Retail sales of investment funds have hit record highs with the best quarter on record in 2010 so it is almost inevitable that we might see a pause for breath.
"Advisers are saying that they believe sales will continue to rise so it is clear that a lot hinges on the Budget on 22 June to set the tone for the investment market in the UK for the rest of the year.”
However there are still concerns that the continuing crisis in the Eurozone may make investors more cautious.
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