Mar 6 2007
Savers who have invested in cash individual savings accounts (Isas) since their launch would currently be 39 per cent better off had they invested in a share fund, it has been claimed.
Personal equity plan (Pep) and Isa management firm Fidelity International has calculated that the average return on an investment of £3,000 a year in a cash Isa would now be £26,000, compared to a return of £36,000 if invested in a FTSE all share tracking Isa.
Richard Wastcoat, managing director of Fidelity in the UK, said: "The benefit of investing in the stock market over cash for the long term is evident in our analysis."
He added that it was "encouraging" that many savers were planning to roll over their cash Isas into equities when new legislation is introduced by the government in 2008.
Earlier this year, fund data distributor Financial Express announced the results of a survey, revealing that 47 per cent of savers would invest as much as possible in an Isa during in the 2006-07 tax year.
