ISA investors have not rested on their laurels since the new tax year began earlier this week and have rushed to take up their increased ISA allowance, according to Interactive Investor’s latest figures.

After seeing record levels of investment in the last tax year, Interactive Investor has revealed that investors are just as keen to take advantage of the new £10,200 annual ISA allowance.

In the first two days since the new tax year began on April 6th, it has seen sales of stocks and shares ISAs – also known as self-select ISAs – more than double compared to the same period last year.

Some of the most popular fund ISAs for investors include the JP Morgan’s Natural Resources fund, while Aberdeen Emerging Markets fund and First State’s Indian Subcontinent fund have also seen high sales.

Commenting, Rebecca O’Keefe, head of investment at Interactive Investor said: “Following a busy weekend we have seen a substantial inflow of cash into our self-select ISA since the start of the new tax year.”

Although acknowledging that not everyone will have cash readily available to invest in one lump sum, Ms O’Keefe urged people who are looking to make an investment in this tax year to consider investing in a self-select ISA.

“More investors than ever are looking to the flexibility that a self-select ISA offers, combined with the potential for better returns compared to those currently on offer via cash ISAs. For higher rate tax payers, especially those who face paying the new 50 per cent tax rate, using all available tax advantages makes perfect sense,” she said.

Meanwhile, research conducted by Interactive Investor to gauge investors’ confidence in the market has revealed that 55 per cent now feel optimistic about the investment outlook over the next five year, while less than one in 10 investors have a negative outlook.

“The generally positive outlook so far this year has meant investors are looking for growth opportunities over the long term. You should not invest unless you have a minimum five year investment horizon, which will hopefully allow you to ride out any possible short term market dips,” Ms O’Keefe added.

© Fair Investment Company Ltd