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Product category: Savings and investment
News Release from: Barclays Wealth Management | Subject: ISA
Edited by the Insidemoneytalk Editorial Team on 20 March 2007

The rise of the self directed investor

Many investors are going self select this ISA season according to Barclays Stockbrokers

Over two in three investors already invest directly in the stock market, and this number is set to rise Today's investors "in the know" are taking control of their own investment decisions this ISA season according to new research from Barclays Stockbrokers, with figures showing that almost two thirds (65%) either already hold a Self Select ISA or are considering taking one out before the end of this tax year Nearly two fifths (38%) of investors are attracted to this type of investment because it will allow them to make their own investment decisions, a further third (35%) wish to control and actively trade their own investments, and a tenth (10%) like the idea of having the choice to buy and sell according to what's happening in the markets

One in ten also said that Self Select ISAs were a cost effective way to make the most of their tax free allowance.

Amy Nauiokas, MD and Head of Barclays Stockbrokers commented: "A self select ISA gives investors complete flexibility over what they invest in, and includes much more than just shares".

"It also provides access to investment notes, unit trusts, investment trusts, open ended investment companies (OEICs), gilts and cash, as long as it is for investment purposes, and also gives investors more control over their holdings - with a £7,000 limit per tax year, they can pick and choose what to buy or sell, and when they do this".

"From the respondents who said they had invested in stocks and shares ISAs over the last 12 months, almost seven out of 10 (68%) said they had invested directly - either by phone, the internet or at a branch".

"The reasons they gave for not consulting a financial adviser included: Almost two fifths (38%) said they wanted to do their own research, further 27% said they preferred to make their own decisions One in ten (10%) pointed out that they were experienced investors so did not need the services of an intermediary".

"Nauiokas continued: "Every year, we are seeing an increasing number of self-directed investors coming through our doors, with further uplift expected over the next few years.

In our experience, this is down to a number of reasons - not only do investors want diversity in their portfolios and not be tied to equities, but they also want the flexibility of selecting their own holdings.

And of course an added bonus is that they are able to access a wide range of fund and sector choices to meet their varying needs, all at a low cost.

At Barclays, Self-Select ISA investors have access to over 600 funds through Barclays Funds Market alone, and with a maximum initial charge of 1.5%, which makes the decision to invest directly in the stock market and trying your hand at picking the next big thing even easier.

Barclays Stockbrokers has a new ISA seminar on its site presented by Director Phil Northey to aid investors in their ISA planning.

It provides an introduction to the Barclays Self Select ISA and also a breakdown of current ISA tax laws and can be accessed via the education centre tab on the following link: http://www.stockbrokers.barclays.co.uk/?category=whatweofferand usecase=landing48and WT.srch=1 Additionally on the website, Barclays Stockbrokers offers 'Investment Selector', an online investment tool, which is designed to enable self-directed investors to easily access a range of products and packages that is consistent with the risk and reward profile which they have identified as their own.

Through opening an ISA with Barclays Stockbrokers, investors have the choice of opting for a self-select or managed account.

With a Self-Select ISA investors have access to over 600 funds through Barclays Funds Market with a maximum initial charge of 1.5%.

Barclays has also launched a new capital protected Investment Note to tie in with ISA season.

Linked to the performance of the FTSE 100 index it is a six year growth investment designed to produce capital repayment and a return of 140% of any rise in the FTSE 100 index at the end of the term.

For further information on Barclays Stockbrokers, please go to www.stockbrokers.barclays.co.uk / tel: 0845 601 7788 -Ends- 19 March 2007.

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