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ISA ‘early birds’ will reap investment rewards, says Nutmeg CEO

Wednesday 8th April 2015

Written by Conor Shilling

Investors who invest a lump sum into their ISA allowance now – at the start of the 2015/16 tax year – will benefit from a whole year of compound returns, resulting in greater returns than if they were to invest at the end of the tax year, according to Nick Hungerford, CEO of Investment firm Nutmeg.
 
“If ever investors need to be quick off the mark it's now,” he says. 
 
“If you're fortunate enough to have sufficient savings to take advantage of the new tax year's allowance straight away, then do so and leave the investments to accumulate. You then start to benefit from compound returns – Einstein's eighth wonder of the world - and the tax benefits you receive will mount up year on year as your investments grow.”
 
“Our calculations show if you'd invested £10,000 in a medium-risk portfolio for each of the past 10 years - on day one instead of at the last-minute - you could have accrued more than £8,000 in additional returns.” 
 
He adds that for those who don’t have a lump sum to invest now, the next best option is to drip feed smaller amounts of money each month into a stocks and shares ISA.
 
“An amount invested in April, has 11 months longer invested with more time to take advantage of the ebbs and flows of the stock market,” he concludes. 
 





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Editorial Contact Details - Conor Shilling
conor.shilling@angelsmedia.co.uk
0845 672 6000
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