Seventeen per cent of UK adults have "never heard" of a stocks and shares ISA, while 25% of those who have don’t know anything about it, the Investment Association has revealed.

The group’s research, conducted with Opinium, also found a "stark difference" between those already holding investment products and the wider UK population.

In comparison, just 2% of investors said they have "never heard" of a stocks and shares ISA.

The survey revealed that while the uptake across all ISA products was "relatively low", this was particularly true of stocks and shares ISAs. Less than a third (31%) of UK adults hold a cash ISA and 16% currently have a stocks and shares ISA.

Of those with a cash ISA who don’t hold any investment products, 39% said no amount of savings would make them feel comfortable investing.

However, the Investment Association said that this means that 61% could become comfortable with the idea of investing, presenting a "significant opportunity" for savers to grow their savings and build financial resilience for the future.

Director of market insights at the Investment Association, Miranda Seath, said: "ISAs are an important, tax-efficient tool to help people to achieve their financial milestones, whether that’s buying a first home, preparing for retirement, or simply securing their financial future. For many, they are also an important first step towards getting started with investing.

"Our research has highlighted a significant knowledge gap between those who are already investing and those who are yet to get started. This means that people across the UK are missing out on the benefits and growth potential investing can bring – and that needs to change.

"The investment management industry has pledged to increase the number of people holding an investment product from just over 20% of the UK population to 75% over the next decade - matching the number who hold a cash savings account today. In turn, this could take advantage of the investor sentiment to back Britain. It is not only the economy that will benefit, but the millions of people across the UK that will reap the rewards investing can bring to their long-term financial security."

---