Money News
Fidelity FundsNetwork reports a total increase of 37% in its individual savings account (ISA) season sales year on year, suggesting that the trend of online investing is rising. While it has been widely reported that there was been an overall fall in ISA sales, gross ISA sales on FundsNetwork increased by almost 29%.
The fund supermarket also experienced a massive uplift of 413% for investments into its SIPP, taking net sales from £25million to £128million. On 5 April alone, £13.6million of ISA and SIPP investments were made at collection points across the country.
Analysis of Fidelity FundsNetwork SIPP sales over the ISA season period (1 January-5 April 2007) has shown that SIPPs could be starting to rival ISAs as a seasonal tax-efficient investment. New annual subscription limits introduced by A-Day are most likely to be the predominant drivers of this change, as well as investors becoming increasingly motivated by the tax advantages available to them.
Richard Wastcoat, UK Managing Director at Fidelity International, commented, "ISA sales on Fidelity FundsNetwork have increased by almost a third on last year, suggesting that the trend for investing online via fund supermarkets is becoming increasingly popular as investors become more and more familiar with the benefits, time and cost savings they can offer.
"What is particularly interesting this year is that along with the usual rush for that last minute ISA, we've also seen a rush for last minute SIPP investments. This could be due to a variety of reasons, such as the annual limits brought in by A-Day and increased awareness of the tax advantages available. It's also an encouraging sign that investors are making a step in the right direction to focus more on saving for their retirement."
The best selling ISA sector for the tax year 2006/2007 was the UK Equity Income sector. While last year the popularity of property funds propelled the Specialist sector to the top of the table, it has dropped down to 2nd place this year as investors took a more cautious stance. UK All Companies drops down the tables for the second year running, and Europe ex UK makes an appearance in the top 5.
20 April 2007 © Moneyextra.com
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