Equity investment dominates ISAs

The majority of investments within ISA accounts are in equities, according to data released by Barclays Stockbrokers.

The UK online stockbroker found that equities account for almost 96 per cent of ISA investment, with funds and Exchange Traded Funds (ETFs) making up the remainder of investments.

Investment in oil and gas companies has increased significantly following events such as the BP crisis, meaning attention has been fixed on the sector, the data shows.

This year sees BP taking first place in a list of the top-15 stock purchases within client investment ISA accounts. Other oil and gas companies such as Xcite Energy, Royal Dutch Shell and Range Resources have all moved up into the top 15.

Traditional stocks in the banking sector also continue to feature heavily. "Oil and gas and banking stocks continue to be popular with our clients. It is interesting to see some new names take centre stage," said Paul Inkster, who is head of product at Barclays Stockbrokers.

He added: "Our clients certainly favour equities, and it is great to see them making effective use of tax allowances to maximise investment returns. Combining these investments with tax efficient accounts – such as the Investment ISA – allows individuals to be in complete control of their investments, whilst managing the tax they pay."