Equity ISA investors set for record returns - Investments - News - Moneyfacts


Equity ISA investors set for record returns

Equity ISA investors set for record returns

Category: Investments

Updated: 04/04/2011
First Published: 23/02/2010

This article was correct at the time of publication. It is now over 6 months old so the content may be out of date.

Stocks and shares ISA investors are on course for a record breaking year of returns, new research from Moneyfacts has revealed.

With only a month and a half to go until the end of the current tax year, the average unit trust/OEIC fund that is open for investment in an ISA has recorded growth of 29.5% since it began on 6 April 2009.

Barring a dramatic fall in the markets over the coming six weeks, it means the current tax year is set to become the best performing tax year since ISAs were launched in 1999.

At present, the 2003/04 and 2005/06 tax years have delivered the best 12 month returns, both having recorded growth of 27.8%, while the first 12 months after the inception of the tax free savings vehicle saw investors rewarded with the next best return of 24.8%.

The new figures also mean that stocks and share ISA investors have enjoyed a significant turnaround in fortunes: the last full tax year of 2008/09 saw ISA funds suffer an average loss of 21.4%, the worst tax year in terms of returns in their history.

"With markets having recovered significantly since reaching a low last March, it appears ISA investors can look forward to recouping some of their previous losses," said Richard Eagling, editor of Investment Life & Pensions Moneyfacts.

"The relatively low rates of return currently on offer from cash ISAs also serve to make the attractiveness of the stocks and shares ISA even more compelling."

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