Following on from the published ISA statistics from HMRC, Fidelity International investment director Maike Currie has said that “returns on cash remain at paltry lows”.
HMRC’s statistics have revealed that the popularity of ISAs has continued to grow, but Currie has highlighted that a majority of the population, “especially women”, still prefer to “shelter” their savings in cash ISAs and neglecting stocks and shares ISAs.
“Granted, while the latter is exposed to the vagaries of the stock market, figures show that over the long term the stock market outpaces cash,” Currie added.
Despite this, the figures indicated that there is a higher number of women subscribing to stocks and shares ISAs.
“ISAs are flexible, accessible and easy to set up. Given that any investment can grow free of income tax or capital gains tax, they’re also a useful insurance policy against future tax changes. Each year you can shelter a generous chunk of money in this wrapper with no limit on how much you can hold within an ISA over your lifetime, making it an important weapon in your long-term investment armoury.
“Empowering women to take on the right risk at the right stage of their life should give them the confidence to opt for stocks and shares ISAs and boost their long-term savings, securing their financial future,” Currie concluded.
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