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Early bird investors do catch the worm, Willis Owen research reveals

Posted by Adrian Lowcock in Press releases category on 01 Apr 19


Willis Owen’s analysis of the FTSE 100 and the FTSE All Share since ISAs were launched 20 years ago on 6th April 1999 shows that investors who were quick to invest received a better return than those who left it until the last minute or saved regularly each month. 

By investing the full ISA allowance into the FTSE 100 (excluding charges) at the start of each financial year over the past 20 years, an investor would have seen their ISA value grow to £353,064 - a huge £14,935 more than if they had waited until the end of the tax year. The gap rises to £16,285 if following the FTSE All Share. 

The research also showed that there was a similar difference between early bird and regular savings for the FTSE 100 (£15,042).  However, regular savers would still have seen their £206,560 investment grow by 64%. 

Early bird investing 

Adrian Lowcock, Head of Personal Investing, Willis Owen: 

“The numbers speak for themselves. It is time in the market that matters the most, not timing it. Given that stock markets generally rise over the longer term, there is a significant advantage to investing at the start of the tax year rather than waiting until the end. With the increase of the ISA allowance over the past few years, we would expect this gap to grow over time.

“Doing your ISA early also means that your investments grow tax-free for longer. In particular, the income from your investments inside an ISA will not be subject to income tax. 

“The benefits of using an ISA early on are more than just financial. By investing at the beginning of the tax year, investors can avoid spending the money on something else. They can also avoid the stress of doing it last-minute, so when the end of the tax year comes, they can relax whilst others are panicking.”