Advisers are preparing themselves for a much slower Isa season as the market continues to be rattled by volatility,
Last year, all the major platforms saw strong business, with UK equity income, emerging markets offerings and UK commercial property among the best sellers.
But with the FTSE hovering below 6,000 and UK commercial property taking a big hit, the picture is expected to be very different this year.
Hargreaves Lansdown investment manager Ben Yearsley believes that putting cash in a stocks and shares Isa is likely to be popular move among investors.
He says: “It means that investors will not lose their allowance while having the ability to invest as they choose when the market stabilises. I also think the specialist sector is likely to outstrip UK equity income, given the popularity of a number of different fund offerings, with the exception of UK commercial property.
Chelsea Financial Services managing director Darius McDermott says: “We expect returns to be down. As for favoured funds, you have to look at the strong performance of the Bric nations. Natural resources also looks an attractive proposition but you cannot rule out UK equ-ity income in the long term, given the performance of the likes of Neil Woodford, Bill Mott and Tony Nutt.”