Investors look for their 'Savings Grace' |
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Published
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Wed, 09 Mar 2005 01:00
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Savings have become the order of the day in the UK but both the active investors and the public seem to be in a dilemma about investing their precious savings in proper avenues.
There are myriad views amongst people opting to save and invest, with about 56 percent of UK residents planning to save (According to Legal and General), 58 percent looking at the stock markets (Association of Investment Trust Companies) and only one out of 25 opting to invest in the market. Similarly, where you can find up to 40% of investors swearing on property, there are others who intend to go the bear and bull way.
| Regarding ISAs which allow people to make tax-free investments of their savings up to £7,000 a year: £3,000 in a cash account, £4,000 in stocks and shares, and £1,000 in insurance, each one holds a different opinion. People already having ISAs plan to stick by that regime whereas there are more than two thirds who will not be picking the ISA option at all. Likewise, there are 57 % of active investors who plan to utilize their ISA allowance this year.
Where Julia Clayworth of Legal & General thinks that the ISA scheme has gained impetus and is on the right course, Annabel Brodie Smith of the Association of Investment Trust Companies does not agree saying that it is the housing and cash sector that has numbers flocking against the ISAs which have failed to attract investors.
She also prescribes investors to go in for regular investments to ease out the risk involved in huge investments. According to her, these investments will help level the market and get people out of the habit of buying when prices are high. People will then eventually go in for big purchases when markets are down and decide on smaller acquisitions once markets are at a high.
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