Willis Owen predicts £1.5bn to be invested before “Funds Friday”

28th March 2013

Obviously discount investment brokers are always in the business of getting you to use your Isa allowance which is clearly why Willis Owen has dubbed the last working day of next week as “Funds Friday”.

However it clearly does make sense to use your Isa allowance if you can. The broker is predicting that a quite staggering £1.5bn could be invested in the final few days before the deadline.  The firm says it is seeing quite a lot of money going into emerging markets but expects income funds to be the big seller.

Jason Chapman, Managing Director at Willis Owen, says: “We are expecting a frenzied final few days in the run up to this year’s ‘Funds Friday’, as Isa investors look to make the most of their allowance. We are already seeing a flurry of money flowing into emerging markets funds, which suggests some investors are being a bit more adventurous in the search for income. Traditionally though, income funds have always proved top sellers over the final few days in previous years, and we expect the same this time round.

“Interestingly, we also anticipate a boost in interest in our Cash Reserve facility. Customers want to secure as much of their allowance as possible before time runs out, but aren’t immediately sure where to invest it. By parking it in the Reserve, they can rest assured they have secured their investments for now, and then decide where it will go in the coming weeks.

“More and more people are choosing to invest directly via a discount broker and benefit from the savings it brings. And we know many will be active right up until next week’s Funds Friday deadline. But to make sure investors secure their Isa allowance in time, and don’t fall foul of any potential administration problems, we recommend they act now and don’t risk leaving it until the last minute.”

Well, Mr Chapman would say that wouldn’t he. But actually he does seem to be making sense.

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