The total amount invested in stocks & shares ISAs has outstripped that of cash ISAs, as cash inflows declined by almost £20bn.
This reflects the fact the stockmarket has produced better long-term returns than cash, and also that people investing in stocks and shares ISAs tend to hold them for longer.
Some £22.3bn was subscribed to stocks and shares ISAs during the 2016/17 tax year, up from £21.1bn in 2015/16, and the number of subscribers also increased from 2.53 million to 2.58 million.
Meanwhile, the amount invested into cash ISAs fell by £19.5bn, from £58.7bn to £39.2bn, while the number of cash accounts opened fell from 10.1 million to 8.5 million.
Danny Cox, chartered financial planner at Hargreaves Lansdown, said: “In a positive development, the number of stocks and shares ISA investors also increased, reversing the trend of recent years and suggesting that more people are now turning to the stockmarket with their long-term savings.”
Article source: Professional Adviser, Investment, 31st August 2017,