Investors are waiting until the last possible moment to use up their ISA allowance, according to new data from one investor house.
Willis Owen has revealed that £1 in every £8 that its customers put into stocks and shares ISAs is invested during the last week of the tax year.
And this seems to be a pattern among ISA investors – over the past five years, Willis Owen has seen an average of 12 per cent of its yearly ISA sales in the week leading up to the 5 April.
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This has led the company to warn investors that they may not be doing enough research into their stocks and shares portfolio, and risk missing the deadline because of technical errors.
“We constantly remind people about the need for proper research and spreading your stocks and shares ISA investments over the year, but still we see the money come flooding into ISAs in the last week of the tax year,” said Jason Chapman, managing director at Willis Owen.
“We expect this year will be no different, but investors should be wary of leaving it until the very last minute. Every year people miss the deadline because of technical errors or submitting details too late.”
To date, Willis Owen’s most popular funds of 2018 have been the Fundsmith Equity I Acc Fund, followed by Rathbone Global Opp I Acc and Jupiter European I Acc.
Chapman noted that this suggests ISA holders are choosing to put their money in a diverse range of markets, adding: “Investing in a stocks and shares ISA is not something which savers can jump into without some level of knowledge of investment markets and how the product works.
“If savers are unsure of where to invest, they can always put the money into a cash reserve facility and make the decision when they’ve had a bit more time to consider the best option for them. This enables them to use this year’s allowance but to put it into funds in the next tax year.”