Market Analysis

British investors showed a strong appetite for stocks in April, contributing to a surge in investments for tax-advantaged Individual Savings Accounts (ISAs), according to data from fund network Calastone. In April, UK-based investors added a net £1.93 billion to equity funds and £422 million to fixed income funds, with a significant portion of inflows occurring in the first five days of the month before the tax-year deadline.

Calastone noted that this year's influx of investments into ISAs was particularly robust, with equity funds attracting £5.2 billion from mid-February to April 5, marking a nine-year high for the "ISA season." Although equity inflows in April slightly moderated compared to the previous three months, they remained focused on North American and overseas funds, while UK-focused equity funds experienced a 35th consecutive month of net selling.

Edward Glyn, head of global markets at Calastone, observed that despite bearish signals from bond markets, the equity market experienced a strong bullish trend in 2024. While inflows may have eased somewhat, they still exceeded normal levels as investors pursued opportunities in stock prices.

In the first quarter of the year, UK investors set a record by pouring £6.97 billion into equity funds, driven primarily by demand for North American equities.

Paraphrasing text from "Reuters" all rights reserved by the original author.