New ISA rules 'an opportunity to reassess investment strategy'
13 May 2008
New rules regarding individual savings accounts (ISAs) provide consumers with the chance to reassess their investment strategy, according to Prudential.
Gary Shaughnessy, managing director of Prudential Retail Life & Pensions, explains that such individuals now have the opportunity to move some of their cash savings into funds investing in shares.
"All the evidence shows that, in the long-run, equities outperform cash and that investors who stay out of the stock market are not necessarily maximising their potential returns," he adds.
The firm believes that the new ISA rules, which allow savers with cash ISAs to transfer money into equity accounts, will give the sector a further boost.
During the 2006/7 tax year, roughly £22.6 billion was invested in cash ISAs.
In recent weeks, Nationwide stated that the increase of annual subscription limits for ISAs from £7,000 to £7,200 is "encouraging" for savers and provides them with the opportunity to invest more in the accounts.
