Saving accounts drop off

18 August 2004
The second quarter of 2004 has seen the sale of investment trust ISAs and saving schemes drop considerably from the first three months of the year.

The total purchases of ISAs through investment trusts and their managers in Q2 2004 increased 0.3 per cent from £21.62 million this time last year to £21.70 million.

In comparison to the previous quarter, investment trust ISA purchases in Q2 2004 decreased seven per cent from £23.29 million.

The total purchase of investment trust saving schemes decreased six per cent from £46.45 million in Q2 2003 to £43.83 million. In comparison to the previous quarter, investment trust saving scheme purchases decreased 12 per cent from £49.67 million.

Daniel Godfrey, director general of (AITC) said: "With markets uncertain, it's not surprising that private investors, who hold some 50 per cent of the investment trust market, are taking a cautious approach, but it's important to take a long-term view."

However, the Global Growth investment trust sector continued to gain the highest proportion of ISA purchases in June (35 per cent). This was followed by the UK Growth & Income sector (12 per cent) and the UK Growth sector (10 per cent).

The average amount invested by regular savers was £150 per month, whilst the average lump sum investment was £3,381.
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