"2010 could be the best year ever for ISAs," said Richard Saunders, chief executive of the IMA.
According to quarterly sales data from the IMA the Cautious Managed and Sterling Strategic Bond sectors have led retail sales in the first six months of the year.
Q1 and Q2 2010 top selling IMA sectors, performance over 1-yr
Source: Financial Express Analytics
Dennis Hall, IFA at Yellowtail Financial Planning, said investors have been upping their ISA savings after the annual tax free allowance was increased from £7,200 to £10,200. He said: "We're not seeing new ISAs being launched, and we're not seeing much in the way of new investors, so this record high is down to previous investors taking full advantage of the increased allowance."
His views reflect a push from the wider market to up the allowance even further. New IMA research shows that almost half of existing investors say that they would save even more if the annual allowance was raised further.
"All types of people said the same thing, from empty nesters to couples who have yet to start a family," said the IMA.
The research also showed that more than one in three investors would invest more if long-term savings incentives remained consistent, with a higher proportion saying they would invest more if there was a lifetime tax-free ISA allowance.
There was also some support for greater flexibility, with one in five saying they would invest more if there was some flexibility to move money in and out of pensions savings. This figure was higher among younger investors, with a third of couples yet to start a family saying this would encourage them to invest more.
"Our research shows that people are positive about incentives to save," added Saunders.