ISA investors choose “safety-first”

UK-based individual investors are moving significantly towards cash holdings as concerns grow about market conditions, research shows.

Pensions and insurance company Aegon studied investors in tax-exempt ISA products and pensions as the tax year comes to a close and found nervousness as over half of those surveyed (55%) were worried about the global economy and a financial crash.

In the next tax year 20% of investors are opting to hold more money in cash and 67% said they were unlikely to invest in stocks in the next year.

The research found that 15% were already holding between 51%-100% of their investments in cash.

Ronnie Taylor, chief distribution officer at Aegon, said: “It is unsurprising that in the current landscape, investors are nervous about where they should put their money. Cash offers a relatively safe short-term solution in turbulent times and our research shows that as tax year end approaches, savers are opting to hold more money in cash.”

Aegon carried out the research among more than 500 adults and weighted results to be nationally representative.

©2019 funds europe

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