At the turn of the new tax year in 2021, sales of stocks and shares ISAs had returned to pre-pandemic levels, with the number of new policies taken out in April up 39% from 2020.
According to fresh statistics from Scottish Friendly‘s Investment Index, the value of new stock and share investments made in April 2021 rose by 35% compared to the same time last year.
The uncertainty brought about by the Covid-19 outbreak in early 2020 prompted investors to flee the market in the first three months of the year, with stock and share policy sales down 20% from the same period last year. One year later, it is easy to see the best performing stocks and shares ISA 2021, and make advised investment decisions.
However, policy sales of stocks and shares ISAs increased by 41% in the three months leading up to March 2021. The value of these new investments increased by 46 per cent in the first quarter of this year compared to the same time last year.
Meanwhile, the index continues to show gains in both sales and investment value quarter on quarter, indicating that investor confidence is increasing.
New policies opened by investors in the first quarter grew by 6% over the previous quarter, and the value invested in these new policies increased by 15% over the fourth quarter of 2020.
Women were mainly responsible for the increase in investor activity in the three months leading up to March. Female customers’ new insurance value increased by 26% quarter to quarter, compared to just 10% for men.
Between the fourth quarter of 2020 and the first quarter of 2021, the number of insurance sold to women grew by 10%, while sales to men grew by just 1%.
Kevin Brown, the communications manager at Scottish Friendly, remarked: “Many households have adapted to a new normal and are still able to take advantage of reduced spending opportunities to save and invest more than they would have done before the pandemic.
“This is highlighted by the fact that the number of policies sold in the first quarter of 2021 is the highest since we began recording the index data more than two years ago.
“During the coming quarters, once the usual seasonal demand we see in the run-up to the end of the tax year and the start of the next has died down, we would expect to see some decline in the amount households save and invest.
“Overseas holidays may still be on hold for the time being, but discretionary spending is still likely to rise sharply over the summer as the economy opens and people are able to spend more freely,” he added.
The best time to invest in new stocks and shares ISAs
In a nutshell, you have complete control over when and how you invest in the best stocks and shares ISA. The most essential thing to know is that ISAs are only available for one year. That is, the 2021 calendar year runs from April 6, 2021, to April 5, 2022.
To put it another way, you may invest the whole £20,000 in one go or spread it out throughout the year. Any further investments must be made in a regular brokerage account if and when your ISA maximum is reached.
This simply implies that any tax savings on excess assets would be lost to you. When the next tax year begins, you may begin working toward your newly set allowance.
