Savers in the UK invested £1.5 billion (€1.7 billion) into funds wrapped by ISAs this April, boosting overall inflows for the month.
Through the course of the month, savers invested nearly £80 million more into ISAs than the previous 12 months, according to data from trade body the Investment Association (IA).
April’s net total of retail inflows came to £6.2 billion, boosted by the cash poured into ISAs.
IA chief executive Chris Cummings said: “Savers have once again shown the appeal of ISAs in helping to get into the savings habit and build up a retirement nest egg.
“Comparing the strong ISA flows this April to the year before shows investors have been moving money into funds to make the most of tax incentivised savings and to deliver better returns amidst low interest rates on cash savings.”
Equities took the lion’s share of inflows with £2.9 billion, while mixed asset funds were the second best-selling asset class in April with £1.5 billion in net retail sales. Bonds attracted £1.3 billion of inflows.
ISAs or – individual savings accounts – allow individuals in the UK to save up to £20,000 tax-free.
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