The most likely group of people to take a risk and chase higher returns by saving into stocks and shares Isas are older investors, according to new research.
Standard Life found 11% of investors aged 55 and above invest in the stock market via their Isa compared to 7% of 35- to 44-year-olds.
The research also revealed men and women take a very different approach to their investments with 12% men currently saving into a stocks and shares Isa. In comparison half the number of women (6%) chose this option for their investments.
Stocks and shares Isas vs cash Isas
At the moment cash Isas are the most popular option with 41% of UK adults are currently investing in one, while only 9% invest in stocks and shares Isas.
While the returns can be greater than those achieved through a tax-free interest cash Isa, the money put into different types of investments through a stocks and shares Isa could go down as well as up.
Standard Life’s study suggested that 6% of people are planning to save more into a stocks and shares Isa in the new tax year than they did last time. Again there was a gender difference with more men (8%) than women (4%) planning to invest more money this way.
Investors can put up to £11,520 in a stocks and shares Isa in the current tax year, of which up to £5,760 is eligible for a cash Isa.
Is a stocks and shares Isa right for me?
Before taking the plunge and placing savings into a stocks and shares Isa, an investor needs to be sure they are financially ready to put money at risk on the stock market.
Also, have a play with Which?’s unique investment portfolio tool that helps consumers choose how much money to put at risk based on different needs.