10 Mar, 2008
Samantha Shaw - 10-Mar-2008
Advisers should still recommend equity Isas
despite market turbulence and not just stick to cash, says Fidelity
The platform says there is an opportunity of over £123bn
currently held in cash Isas that is eligible to transfer into a
stocks and shares Isa from April 6.
FundsNetwork says if investors held the £3,000 limit in a
cash Isa every year since their inception in 1999, their pot would
be worth £29,619 compared to a UK equity Isa, which would
have resulted in a fund of £37,214.
Head of sales and marketing Rob Fisher says looking beyond the UK,
the average global emerging markets fund would have yielded
£63,830 at the same amounts.
Fisher says the new rules next week should encourage more
investors to switch at least part of their cash holdings into
equities, despite market volatility.
He says: "Since the introduction of Isas, most equity markets have
seen a bear and a bull phase. While cash clearly has its
attractions, over time it has been a less effective means of
managing for inflation than equities. To preserve the real value of
your client's savings history investors should have at least some
of their money in shares."