Advisers should urge their clients to look beyond cash Isas, Nutmeg chief executive Nick Hungerford has said.
“Relying fully on just one asset class, whether it is cash, property or stocks, is a risk in itself.”
Research among 2,002 people in January on behalf of Nutmeg found 52 per cent held a cash Isa and 17 per cent held a stocks and shares Isa.
Of those cash Isas, 37 per cent said the risks involved in a stocks and shares Isa were too high, 32 per cent wanted to access money quickly and easily and 20 per cent said a cash Isa was the best option for their savings objectives.
Some 19 per cent said it was easier to save the money in cash, another 19 per cent said stocks and shares Isas were too complicated, and 18 per cent did not want to pay the investment fees associated with stocks and shares Isas.
Tom Wilcox-Jones, IFA for London-based Blackstone Moregate, said: “It is not uncommon that when you meet somebody with a cash Isa, that money or a proportion of it is for long-term investments over five, 10 or 15 years. But cash Isas only offer negligible returns.”