Legal & General Investment Management Limited

Legal & General Investment Management Limited

March 15, 2011 12:56 ET

A Quarter of Investors With Over Pounds Sterling 55k in Equity ISAS Do Not Check Their Investments, Report Legal & General

SURREY, UNITED KINGDOM--(Marketwire - March 15, 2011) - New research from Legal & General Investments, one of the UK's largest ISA providers managing more than £310 billion (as at 28 February) for clients, reveals that over a third (35 per cent) of UK investors fail to check the performance of their stocks and shares ISA.

The research highlights worrying behaviour among investors who have accumulated large sums in equity ISAs. It shows that almost a quarter (24 per cent) of those who have accumulated £55,000 or more, remain largely inactive in managing their ISA portfolios, admitting they neglect to check the performance of the underlying stocks and shares.

The research also shows that a significant number of ISA investors tend to make an investment decision and stick to it. Two in five (40 per cent) admit that they don't change the underlying stocks and shares in their ISA, even if the return is not what they expected.

Inactive ISA investors attribute their behaviour to a long term investment strategy. Half (50 per cent) of these investors see their ISA as a "long term investment and do not want to be concerned with short term fluctuations". But the reality for almost one in 12 investors (8 per cent) is that they simply forget to check performance.

When looking at those who check the performance of the stocks and shares their equity ISA invests in, the research reveals that:

  • 11% check their holdings every day 

  • 32% check ISA performance two to three times a year on average

  • 10% only check their investment annually

Claire Evans, Marketing Director, Legal & General Investments, said: "An equity ISA is a tax efficient way of investing directly into the stock market. As our research shows, some investors use this vehicle as part of a long term investment strategy while others monitor their investments on an almost daily basis. It is interesting to see that some investors with large sums of money invested in their ISA chose to ignore performance on the basis that they have a long term strategy.

"Many people's first step into investing is through an equity ISA. It familiarises investors with the risk and reward nature of investment. Through utilising your yearly ISA limit, which currently sits at £10,200 per annum, investors can accumulate a healthy investment pot."

*All figures, unless otherwise stated, are from YouGov Plc. Total sample size was 1,004 adults who hold a stock and shares ISA. Fieldwork was undertaken between 19th and 21st January 2011. The survey was carried out online. The figures have been weighted and are representative of all GB adults (aged 18+).

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