ISA investments in January

ISA investors shun bonds in favour of UK & global equities

2016 has been a turbulent year for stock markets so far, and pronounced market falls have historically deterred all but the most seasoned of investors. However, times of market stress can often be a good moment to take the plunge.

Here's where our clients have been putting their ISA money in January*:

Bonds shunned in favour of UK and global equities
As you can see, there isn't a bond in sight in the top ten selling funds, and the Sterling Strategic Bond sector, which was third most popular last ISA season, has fallen to 7th place. Asia Pacific ex Japan and Global Emerging Markets funds are also noticeable by their absence, whilst UK equities remain a firm favourite, although their little party has been broken up by Global equities, which has risen from 4th to 2nd place.

Size seems to matter
When it comes to individual funds, Woodford Equity Income remains a firm favourite, benefiting from Neil's experience, longevity and consistency in this sector, particularly in difficult market conditions. Investors are also obviously favouring funds invested in small and medium-sized UK companies, as evidenced by the five smaller companies, mid cap and multi-cap funds making an appearance in the top 10.

Top selling funds and sectors amongst our ISA investors last ISA season***

*1st to 26th January 2016, Chelsea Financial Services
**Source: FE Analytics, FTSE All Share total returns, 1st February 2015 to 1st February 2016
**1st January to 5th April 2015, Chelsea Financial Services