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ISA investors urged to take their time

ISA investors urged to take their time

Category: Investments

Updated: 25/03/2011
First Published: 25/03/2011

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 It is now over 6 months old so the content may be out of date.

Some ISA investors spend only a couple of minutes deciding which funds to invest in their equity ISA, new research has revealed.

The study by Legal & General Investments reveals that most equity ISA investors show little interest in managing their ISA holdings.

Nearly one fifth of investors spend less than half an hour choosing the funds in which their ISA is invested.

However, for one in ten ISA investors, it takes only 'a matter of minutes' for this vital decision to be made.

Even those with large amounts to invest were found to pay little attention to where their money was being invested.

Around seven in ten investors with over £50,000 in their ISA admitted to taking just two hours or less to review their holdings every year.

As to why investors lacked the motivation to keep on top of their investments, one in ten did not consider their investment to be large enough to warrant checking.

Given that the average value of the respondents' equity ISA was £27,712, it makes it all the more surprising that many investors spend so little time reviewing the fund in which their ISA is invested.

"An equity ISA is a tax efficient way of investing directly into the stock market and for an increasing number of people, an equity ISA is the first step to feeling comfortable with the risk and reward nature of investment," said Claire Evans, marketing director of Legal & General Investments.

"There is no such thing as a risk-free investment, yet a surprisingly large proportion of investors are dedicating less than half an hour to reviewing the fund in which their ISA is invested.

"Through utilising your yearly ISA limit, which sits at £10,200 per annum, investors can accumulate a healthy investment pot.
They can make returns by regularly monitoring their investment, but they need to remain engaged."

If you're unsure as to where to invest, Skipton Financial Services will be able to help.

They can compare over 1,100 ISAs and funds from over 60 providers – if you need help in choosing the right investment, call Skipton Financial Services free on 0800 731 5342

A product such as the Baillie Gifford Investment Trust ISA also offers access to a wide range of investments and funds.

Looking for a cash isa - Compare cash isa rates and best isa rates for transfers

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Disclaimer: Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.