Investors should decide whether they want a 'low risk' or a 'high risk' fund, The Share Centre has said.
Top recommendations for stocks and shares ISAs have been made by brokers at The Share Centre.
According to the investment experts, corporate bonds and emerging markets provide good opportunities for 2009. However, The Share Centre also warned of the currently turbulent conditions in the financial markets posing big risks for private investors.
Top ISAs tipped by the brokers were the Invesco Perpetual Corporate Bond Income Fund, whose impressive 7.1 percent distribution yield met with praise and the Allianz RCM BRIC [Brazil, Russia, India, China] Stars A Accumulation Fund, which was seen to offer "long term" benefits. The former and latter funds were also delineated as "low risk" and "high risk" respectively by the brokers - who said that they would suit the needs of different kinds of investors.
Accordingly, The Share Centre also pointed out that, while the Allianz fund returned 58 percent in 2007, it also lost 54 percent last year - highlighting the turmoil in emerging markets caused by the credit crunch.
More generally, Andy Parsons, advice team manager at The Share Centre, said that stocks and shares ISAs represented a better option than cash ISAs to investors at the moment. "Recent interest rate cuts and pressure on saving rates, have left cash deposits virtually worthless," he said. "With this in mind, now could be a good time for those wanting to make the most of their tax-free allowance to accept some risk and invest in the stock market."
