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Isa sales slide continues with 27% fall

Isa sales fell again in May, with business down by 27 per cent compared with May 2001, according to the Investment Management Association.

Despite total sales of investment funds rising by 11 per cent last month to £897m from £807m in May 2001, IMA figures show that Isa sales fell sharply to £459m from £633m as investors shied away from the stockmarket.

Investors who did buy Isas looked to the UK corporate bond sector for ret-urns, with the sector&#39s share rising to 19 per cent from 16 per cent in April.

Despite the rising popularity of bonds, the UK all companies sector remains dominant, accounting for 34 per cent of Isa sales and 24 per cent of all retail sales in May.

The IMA is scrapping the global equity income and global equity & bond sectors. It has split the UK gilt sector in two but added the UK linked gilt sector.

Head of communications Clare Arber says: “Continued investment from private investors helped maintain industry sales. However, it looks like the more experienced investors have the positive attitude. Novice investors do not seem so confident, investing in smaller numbers and into more defensive sectors.”

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