The number of ISA savings schemes purchased by savers in the first quarter of 2005 increased a huge 155 per cent from the final three months of 2004, according to the Association of Investment Trust Companies (AITC).

The AITC found that savings schemes were universally up by nine per cent on the previous year.

The investment trust industry has been producing some strong returns since markets picked up, and there have been a number of innovations in the sector, from discount control mechanisms through to trusts broadening their investment remits, Daniel Godfrey, director general of Association of Investment Trust Companies (AITC), said.

Mr Godfrey added: With this in mind, it's disappointing to see that private investors are still reluctant to invest in equities.

He claimed that there was a long way to go before the majority of investors stopped taking a buy high and sell low approach, meaning many will continue to miss out on good opportunities.

The AITC is a non-profit trade body of the investment trust industry and was formed in 1932. The company represents investment trust companies and their shareholders but also work closely with the management groups that administer the companies.

The individual trusts provide their funding, and activities are focused on providing value to them and their shareholders.