Stocks and shares ISAs more popular than cash ISAs

The independent survey into current and future investor sentiment shows that over three-quarters (77%) of respondents had invested in stocks and shares ISAs in the last year, compared to 53% who have invested in a cash ISA.

This is the first time in the six years TD has been studying investor confidence that sentiment has swung in favour of stocks and shares ISAs. In last year’s survey,  two-thirds (66%) of respondents said they had invested in a cash ISA compared to 47% who had invested in a stocks and shares ISA.

Meanwhile, back in 2008 - just before the Base Rate fell to it’s current level of 0.5% - 71% of repsondents had invested in a cash ISA compared to 58% who had invested in a stocks and shares ISA.

Stuart Welch, CEO, TD Direct Investing comments:

“In the six years we have been studying investor confidence ISAs have always been the most popular investment option among respondents. However as we enter into our fourth year of low cash returns in the UK, share products continue to increase  in popularity and this has tipped the balance in favour of stocks and shares ISAs among the respondents to our latest Global Investor Confidence Study.”

A stocks and shares ISA can be used to hold more than just equities, so TD has looked at the most popular funds customers are currently holding in their TD Trading ISA.

With no surprises at the top of the table Blackrock’s Gold & General Account maintains its number one position having been the most popular ISA holding among TD customers for the past four years.  The value of gold was up by over 25% on last year’s price and continues to be viewed as a safe haven particularly when other sources of comfort, notably the Dollar and the Swissie (Swiss Franc), have had a turbulent time recently.

Other interesting trends include the fact that Asia remains a popular choice amongst TD’s ISA customers with Aberdeen Emerging Markets, First State Greater China Growth, First State Asia Pacific and First State Indian Subcontinent in second, fifth, seventh and tenth place respectively.  

Stuart Welch, CEO, TD Direct Investing comments:

“We have seen a radical shake up in the composition of our customer’s top ten ISA holdings this year with the UK and Europe more prevalent than last year’s favourite: the emerging markets’ fund. The indexes, such as the FTSE, have been growing steadily this year despite the turbulent economic backdrop and our customer’s may be hopeful for the long term prospects of the UK and European markets.”