Woodford and Lindsell Train are among the top fund picks as Hargreaves Lansdown sees an 87 per cent rise in transfers of cash Isas to stocks and shares Isas in H1 compared to the same period last year.
Both the Woodford Equity Income and Income Focus funds feature in the top picks alongside Lindsell Train Global Equity. Jupiter India and Fundsmith Equity round out the top five.
Legal & General dominated the most popular tracker funds for transfers with its US Index, European Index, International Index Trust and UK 100 Index Trust all featuring. Blackrock Emerging Markets Equity was the only tracker from another provider.
The increase in savers ditching cash comes as the ONS shows inflation for June at 2.6 per cent.
Hargreaves Lansdown chartered financial planner Danny Cox says the spending power of cash is going backwards and the best cash ISAs offer just over half the interest needed to match rising prices, let alone beat them.
“The probability of a small interest rate rise this year has fallen from even stevens to 41 per cent according to markets, but even then it would make little material difference to cash ISA savers,” Cox says.
Hargreaves figures sit in contrast to a survey released by AegonUK today showing 67 per cent of the UK public say they have not taken any steps to review their savings and investments to protect themselves against the erosive effects of inflation.
The survey found 80 per cent of respondents were worried about maintaining their current lifestyle in the face of rising inflation, while 62 per cent of Millennials have less money left at the end of the month than six months ago.
Blackrock analysis shows UK savers stand to lose £1.5bn this year if inflation remains at a monthly average of 2.4 per cent based on total cash savings of £60bn.