Isa sales have bounced back from last September’s outflow.
IMA figures show net sales recovered to 45.3m in November although they were still well below sales of 200m in November 2003.
September saw a net outflow of 23.5m for the first time since the introduction of Isas in 1999, following the lowest recorded inflow of just 25m in August.
Total investment funds under management increased to 267.8bn in November from 260bn in October although total net sales of 562m were down by more than a third on October’s 902.2m.
IMA deputy chief executive Sheila Nicoll says: “We hope that the recent announcement from the Treasury that current Isa limits will remain until 2009 will remove some of the uncertainty which has affected the Government’s hitherto most successful savings product.
“It remains to be seen whether Isas will reach their previous popularity and fulfil their potential in encouraging individuals to save.”