Investors still see opportunities for better returns by investing directly in the markets, finds Barclays Stockbrokers.

Investors intend to place up to 89 per cent of their ISA investments into risk-based investments in the next tax year.

Moreover, equities remain the most popular investments for Barclays Stockbrokers investors, with banking stocks and other financials continuing to dominate.

The research also found that two-thirds had invested in an investment ISA this tax year, and of those almost half had invested the full £7,200.

The majority of investors are planning to invest into an investment ISA in the 2009/10, with more than 40 per cent believing they definitely will.

Barbara-Ann King, head of investments at Barclays Stockbrokers, says, ‘While the ongoing market volatility of recent months has clearly taken its toll on investor confidence, our research shows that there is still a place for equities in investors' portfolios, and the overwhelming majority of our customers continue to see value and opportunity in the markets into the next tax year.’