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TD Waterhouse reveals investors mix risk and reward to maximise Stocks and Shares ISAs

11 March 2009 / by Rachael Stiles
To make the most of their Stocks and Shares ISAs, TD Waterhouse has found that investors are implementing a combination of risk and income.

TD Waterhouse's analysis of its customers' investment behaviour reveals that they are taking "an eclectic approach" to their ISA investments at the moment, in an attempt to make the best of the current economic climate.

The most popular funds in the TD Waterhouse ISA are those that mix risk with income, the investment broker found, with more investors turning to Stocks and Shares ISAs as returns from Cash ISAs suffer.

Commenting on the results, TD Waterhouse CEO Angus Rigby, said: "With the lowest interest rates on record in the UK and continued volatility in the global markets, our customers are taking a much more diversified approach to their ISAselection this year.

"The Blackrock Gold and General Account is currently the most popular choice among our ISA investors and it is also interesting to see portfolios with a varied mix of asset allocation and country specification."

The popularity of Investment ISAs continues to increase year on year, the research also found, with ISAs remaining the overall preferred investment options among savers.

Despite the current conditions in the economy, the TD Waterhouse Investor Confidence Index shows a 10 per cent rise in Stocks and Shares ISA investment in the 12 months to November 2008, with 58 per cent of respondents to the survey investing in this type of ISA.

Tumbling returns on Cash ISAs as the Bank of England has cut base rates for six consecutive months have had an effect on the popularity of Investment ISAs, Mr Rigby said, adding:

"Six successive interest rate cuts have left investors reeling as returns on cash dwindle. Many of the funds bought and sold within a TD Waterhouse Trading ISA or Regular Investment ISA can help shrewd investors to diversify their holdings so they can also be used to hold unit trusts, shares, investment trusts, gilts or bonds.

"This also enables investors to broaden their horizons when managing their portfolio to include more exotic funds or markets they may not have previously considered and at no additional cost," he said.

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