Despite current market volatility, 84 per cent of ISA investors are still confident in making their own investment decisions and chose a stocks and shares ISA for that reason, Barclays Stockbrokers has found.

Investors are attracted to the flexibility of self-directed investment ISAs, Barclays’ research revealed, with 58 per cent of investment ISA customers choosing this option so that they can adjust their investment portfolios according to changes in the markets.

And, even though markets have lost ground since the beginning of the year, more than half of investors (53 per cent) are confident about investing in the current economic climate, with just six per cent saying that the market is simply too volatile to invest at the present time.

Contrary to analysis of the wider population, 46 per cent of which said they would not invest in an ISA in the next tax year, Barclays Stockbrokers found that 94 per cent of investors intend to invest at least the same amount in their ISA in the next tax year, if not even more than this year.

This bullish trend amongst Barclays Stockbrokers’ clients is consistent, it said, with share purchases accounting for 62 per cent of trades since the beginning of the year – a 58 per cent increase on the same time last year as investors cash in on falling share prices.

“As markets continue to weather the storm of the current downturn, it is encouraging to see ISA investors taking the bull by the horns and managing their own investment decisions,” commented Barbara-Ann King, head of investment at Barclays Stockbrokers.

“Throughout the market turmoil of the last year we have consistently seen our clients take an ‘Instividual’ approach, acting like experienced institutions in their decision making, becoming increasingly astute and taking control of their investment choices, while capitalising on market conditions to get returns.

“‘Instividuals’ are also making full use of the techniques, products and services traditionally reserved for their institutional counterparts,” she continued.

“Our recent dealing data also supports this trend, with clients consistently taking advantage of market volatility to generate returns.”

Ms King, added: “While cash rates remain at an all time low, equities and other investments have the potential to offer better returns over the longer term.”

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