ISA sales reached a nine year high in April, according to the Investment Management Association.

Their fund statistics showed that stocks and shares ISAs jumped in popularity among savers last month despite the low rate market and financial uncertainty over recent years.

Sales of stocks and shares ISAs in April were the highest they’ve been since 2001 with an overall figure of £1.2 billion. This is 56 per cent higher than in March and 63 per cent more than April last year.

The sharp rise is likely to be linked to the increase in the ISA limit, which came into force on April 6 when the limit was raised to £10,200. Up to £5,100 of the new limit can be saved into a cash ISA but the whole allowance can be used in stocks and shares ISAs.

Investors are also thought to have regained confidence in the markets after they saw a recovery during the first quarter of this year, following 2009’s lows.

Alan Easter, Director of discount broker Willis Owen, said: “Investors continue to take advantage of the tax free benefits of investing within an ISA. Despite the uncertainty of the election and the ongoing financial turbulence investors appear to remain confident about the long term prospects for growth.

“We have seen record levels of investment since the start of the current tax year as investors take advantage of the new £10,200 allowance. The two most popular sectors among our users in April were global growth and cautious managed. Investors clearly see investment opportunities but also want to retain a proportion of their holdings in funds with a core level of fixed interest and cash.”

The IMA statistics also give details on sales of funds, including funds under management and UK domiciled funds.

IMA chief executive Richard Saunders said: “April had the highest net retail sales so far this year and funds under management once again reached record levels. For the previous 12 months, fund sales have averaged over £2bn a month and during this time total funds under management have increased by 38 per cent. April’s ISA sales are the highest monthly figure we have seen since 2001.”

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