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It is still a good time to make Isa investments

The confirmation that February Isa sales are down by almost 40 per cent on last year is unlikely to come as news to anyone involved in investment sales.

For three months, the media has been getting itself in a spin about a possible recession and, with another 20 per cent wiped off the FTSE last week, investor sentiment is as flat as it can be.

But while much of the investing public continue to make their Isa decisions on the strength of doom and gloom headlines, IFAs would do well to ignore the media when advising clients in the last few days of the Isa season.

The reasons for investors to use their Isa allowances are as compelling as they ever were. While markets have the capacity to fall still further over the coming weeks, there are abundant opportunities for good, active fund management.

Many of the new companies which were overvalued last year have not only fallen back to sensible levels but are even beginning to look good value.

For nervous investors who refuse to be exposed to equity markets in their current state, almost all fund managers are offering phasing or free switching options.

In the face of a constant bombardment of advertising, it has become increasingly difficult to trust fund firms&#39 exhortations that now is the time to invest. But just as a stopped clock is right twice a day, the fund industry&#39s perpetual call to invest occasionally becomes shrewd advice.

It is also just about the best time to expose the fiction that Isa investors do not benefit from seeking out decent independent financial advice.

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