ISAs offer 'attractive rates of interest'
28th July 2008
Investing in the stock market through an ISA could work to a consumer's advantage if share prices are fluctuating.
Sue Hussin from the Sctosman has said that whilst some people may be concerned about investing in shares in the current economic climate, it may make more sense to invest in the stock market now because of 'pound cost averaging'.
Ms Hussin explained: "The main benefit of investing regularly is known as pound cost averaging, because it helps smooth out the price at which you buy shares. If the market falls, your monthly investment will buy more shares."
She continued: "When the market rises, fewer shares will be purchased and the shares you bought at a lower price will increase more in value."
ISAs offer "attractive rates of interest" and the interest rates are tax free. Ms Hussin suggests people invest in an ISA through a fund supermarket which gives users access to a wider portfolio of funds.