Thousands of disillusioned savers fed up with poor saving rates are turning to the stock market in the wake of Covid-19
Amateur investors are thought to be behind a surge in new stock market accounts opened in lockdown.
Leading investment platforms have reported a record rise in new ISA and pension accounts as savers look to make their money go further.
Investment plans increase due to pandemic
The rise also comes after the stock market was plunged into chaos by the Covid-19 pandemic, with experts believing many investors hoped to get a bargain and buy shares cheaply with a view to reaping the benefits of a following rise.
AJ Bell reported a record 17,000 new account openings for its YouInvest platform in the first quarter of this year.
And Interactive Investor noted a 144 per cent increase in new stocks and shares ISA accounts and 136 per cent for self-invested personal pensions (Sipps) in April and May compared with 2019.
One of the most influential guidance services from platforms is the ‘select lists’, offering a slimmed-down range of funds.
They usually feature 50 funds chosen for strong management, performance and low cost — a welcome aid, given there are more than 3,000 funds to choose from.
It is reassuring to see that many savers are now considering investments as a way to maximise their funds and that they are keen to do some homework.
However, whether you are a first-time investor or a seasoned share picker, it is vital to compile a well-balanced portfolio that spreads the risk. An independent financial advisor is well placed to provide sound, individual advice for your own set of circumstances.
For more information contact Becky Hammonds on: 01782 331158 or 07969 269677 or email firstname.lastname@example.org