ISA investors turning to equities

ISA investors are looking to equities in order to achieve improved returns.

According to research conducted by Barclays Stockbrokers, the UK's largest execution-only online stockbroker, 58 per cent of their ISA investors are diversifying away from cash as a result of low interest rates.

In addition to this, it revealed that most Barclays Stockbrokers clients hold an Investment ISA because it enables them to make their own investment decisions - 87 per cent - while half say they want to always be aware of how their money is invested.

Catherine Penney, vice president of Barclays Stockbrokers, said: "As the Bank of England holds the base rate at 0.5 per cent, our research shows that the low interest rate environment continues to make Investment ISAs more attractive to our clients."

She added it is necessary for investors to be prepared to take on the risk of loss to their capital and uncertainty in order to have the chance of benefiting from higher returns.

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