THE tax year end is fast approaching — and that means it’s time to use up your ISA allowance NOW.
Adults can invest up to £20,000 a year in a stocks and shares ISA and any profits are tax-free. But the allowance resets on April 6 so we have spoken to experts to find out what you should invest in before time’s up.
Don’t worry if you don’t have the full amount — lots of investment apps let you open an account with as little as £1, and small amounts can really add up over time.
A good approach is a “set and forget” strategy: invest a lump sum or set up a regular payment, then hold long term without having to think about it. This reduces trading fees and hopefully maximises growth over time.
But with thousands of funds — which are ready-made baskets of shares picked by experts — and individual stocks to choose from, knowing where to start can feel overwhelming.
We’ve asked three top investment experts for their best ideas this year, covering UK funds, global funds, income-paying options, one-stop shop investments and higher-risk picks for those feeling adventurous.
Before investing, make sure you have three to six months’ worth of outgoings in an easy-access account, and pay down any expensive debt first. Only invest money you’re happy to tie up for at least five years.
These funds are rated highly by our experts, but do your own research before committing.
Past performance is no guarantee of future returns — don’t just chase recent top performers. Think about your risk appetite (free online questionnaires can help), your goals, and your time horizon.
How to pick and open up a stocks and shares Isa
TO get started, the best way to get set up is by opening a stocks and shares Isa.
There are plenty of websites and apps you can do this with – such as Hargreaves Lansdown, AJ Bell, Wealthify and Nutmeg.
You will need to pay a fee for the app or website you use – this is either a flat rate per month or year, or a percentage of the amount you invest.
For example, if you invested £500 and the fee was 0.5%, this would be £2.50 a year – although be sure to check whether there is a minimum charge.
Then you will also pay for the actual investments you choose. This will either be a set charge each time you buy or sell an investment, or a percentage of the amount you invest.
You can often get started and invest with as little as £1, or by setting up a monthly direct debit from £25.
“I don’t really read the fund reports, I just leave my money to grow. I believe in being diversified and investing for the long-term.”
It might not be the most exciting way to invest, but the long-term numbers speak for themselves.
Ben Yearsley, director at Fairview Investing, says: “Buy and hold might look like a boring way to invest, but making money slowly is the best way to create long-term wealth.
“Chopping and changing, and chasing a quick buck with the latest fads and trends, just doesn’t work. Most people are best off choosing a portfolio and then just sticking with it for the long term – that means at least five or 10 years, and maybe even 20 or 25 years.”
UK funds for homegrown heroes
The UK stock market has not been that popular in recent years because it doesn’t seem as exciting as the US, which is home to fast-growing technology companies like Meta, Amazon and Alphabet (Google’s parent company).
Most read in Uncategorized
But the FTSE 100 – an index of Britain’s biggest businesses including Aviva, AutoTrader and NatWest – has been performing surprisingly well. If you’re looking for homegrown heroes, here are the funds our experts rate.
Premier Miton UK Value Opportunities
This fund tries to spot hidden gems in the UK stock market, says Rob Morgan, chief investment analyst at Charles Stanley.
“It invests in a mix of large, medium and smaller companies and focuses on less-fashionable areas where you can buy shares at a better value,” he explains.
Its top holdings include the holiday firm Jet2 and the retailer JD Sports. A £100 investment would have grown to £120 over five years.
This works out as an overall return of 20% and an annual return of around 3.71%.
Gresham House UK Smaller Companies
Smaller companies can be riskier to invest in, but pick the right ones and you could be an early investor in the biggest businesses of the future.
That doesn’t mean they are tiny companies though – this fund focuses on those worth up to £1 billion. It has about a third of its money in companies listed on the Alternative Investment Market (Aim), a junior stock market for fledgling firms.
Alex Watts, senior investment analyst at Interactive Investor, says: “The fund managers focus on well-run, high-quality companies. While smaller companies can be more volatile, [the fund’s] emphasis on profitable, robust and low-debt firms should provide resilience.”
Its top holdings include Moonpig Group and Trustpilot and a £100 investment would have grown to £106 over five years.
This is an overall return of 6% and an annual return of 1.17%.
Fidelity Index UK
For an easy and cheap way to invest in homegrown businesses, Fidelity Index UK tracks the performance of the FTSE All Share, an index of the 350 largest companies in the UK including HSBC, Shell and National Grid.
These funds are known as tracker funds because they simply copy, or track, a chosen index rather than an expert manager cherrypicking the companies they think will perform best. The fund is incredibly cheap at 0.06% a year – equivalent to about 6p per £100 invested.
A £100 investment would have grown to £172 over five years.
This works out as a total return of 72% or 11.46% a year on average.
Worldwide funds for globe-trotting investors
This group of funds invest in the shares of companies from all across the world.
Some may prioritise developed countries such as the US and UK, while others put money into developing nations such as India and Brazil, which are riskier but can potentially deliver greater returns in the long-term.
These funds can be a great way to spread your money across the globe and invest in some of the biggest brands on the planet.
JOHCM Global Opportunities
This fund invests in companies across the world including the US, Japan, and Germany.
“The fund managers look for businesses that are strong and steady, and can keep making decent profits even when times are tough,” says Rob Morgan. “This style of investing usually means the fund doesn’t move around as much as others and often holds up better when the stock market falls.”
Its biggest investments include the German stock exchange Deutsche Borse, the tobacco company Philip Morris and the French advertising firm Publicis Groupe.
A £100 investment would have grown to £155 over five years; a return of 55% or 9.16% a year.
Dodge & Cox Worldwide Global Stock
This fund invests in established companies across the globe but focuses on so-called “value” investments, which means the fund manager believes their shares are currently cheaper than they are worth, creating a good opportunity to invest.
Alex Watts likes that as a result it holds some different names to other global funds; top holdings include Taiwan Semiconductor, a chip-maker based in Taiwan, the Indian bank HDFC, and US delivery firm FedEx.
A £100 investment would have grown to £162 over five years. This works out at a 62% return or 10.13% a year.
Fidelity Global Special Situations
The managers of this fund are looking across the globe for companies they think are undervalued by other investors, which means their share price could rise in the future. Darius McDermott likes that they back unique companies which are leaders in their particular field.
Its top holdings include Samsung Electronics and the financial services group JPMorgan Chase. It invests across countries including South Korea, Germany and Japan.
A £100 investment would have grown to £155 over five years – 55% total return or 9.16% a year.
Spicy funds for adventurous investors
With investing, typically the more risk you take, the greater your returns will be over the long-term – but be prepared for more ups and downs along the way.
Investors should not pour money into riskier funds without considering how they might feel about the uncertainty – you don’t want sleepless nights.
And these funds should be long term investments. If there is a dip, usually the best advice is not to panic, but to stay invested, and your money should recover and grow over time.
Scottish Mortgage (SMT)
This fund has gained a reputation as being an early backer of some of the world’s biggest companies. It first invested in Amazon back in 2004. Some of the firms it invests in are private companies, not yet listed on the stock market, which is riskier because they can be more likely to collapse. Its investments include Elon Musk’s SpaceX and Tiktok owner Bytedance.
Alex Watts says: “The fund’s philosophy is to identify the major drivers of change in the world and invest in companies poised to benefit from those themes.”
A £100 investment would have grown to £105 –a return of just 5% or an annual rate of 0.98%.
However, the same amount invested a year ago would now be worth £126, showing how volatile this area can be.
Schroder Global Alternative Energy
Conflict in the Middle East has brought energy security into sharper focus, and the importance of renewable and alternative energy sources.
“Renewable energy represents an important part of the mix and there are opportunities to back businesses at the heart of the shift towards cleaner energy,” says Rob Morgan.
This fund invests in companies helping in the move to renewable energy including offshore wind turbine maker Vestas Wind Systems. However, this can be a volatile area to invest in.
A £100 invested five years ago would be worth £88 today, but the same amount invested one year ago would have grown to £137.
Ashoka India Equity
The Indian stock market has been hit by worries about the Middle East conflict and oil prices, but Darius McDermott thinks it will be a great place to invest over the long-term.
“The country remains compelling, with a young and expanding workforce, which contrasts sharply with the ageing populations of most developed markets,” he says.
The fund includes companies from across a range of sectors including telecoms and banking.
A £100 investment would have grown to £154 over five years.
Income funds for retirees and income seekers
Income funds pay a regular income to their investors, which can make them a good option for retirees who want a steady amount coming in. The income comes either from the fund investing in companies that pay a dividend (where they return some of their profits to shareholders as a reward) or from investing in bonds, a type of IOU issued by a government or company, which pay a regular amount in interest.
You can still pick an income fund if you don’t need a regular payment – just choose the “accumulation” option when you select the fund, and the income will be automatically reinvested, which helps boost your returns.
Vanguard Global Aggregate Bond ETF
The fund invests in thousands of bonds issued by governments and high-quality companies across the globe, giving a diversified portfolio which generates income from a wide variety of places.
About half the fund is in bonds issued by governments including France, UK, US and Germany. It also holds bonds issued by the likes of American Express and Santander.
Over five years, the fund has not done too well, and a £100 investment would have stayed about the same.
However, same amount invested over three years would have grown to £115.
Guinness Asian Equity Income
For something a bit different, this fund invests in dividend-paying companies based in Asia including China, Taiwan, and Australia. This is a riskier income option, says Alex Watts, because it invests in emerging markets and only holds about 36 different stocks (whereas many funds invest in 50 or more, which spreads your risk).
But it offers the chance to invest in some of the world’s fastest-growing companies and economies.
Its top holdings include the Taiwan manufacturer Elite Material, the Chinese insurance group Ping An, and Singapore bank DBS Group.
A £100 investment would have grown to £135 over five years; a return of 35% or 6.19% a year.
What are the risks?
BEFORE you start investing, you need to understand the risks.
The return you make will depend on how much you invest and where.
As we have seen recently, the stock market can dramatically fall.
The American stock market recently saw its biggest drop since the start of the Covid pandemic after US President Donald Trump announced plans to introduce punitive tariffs on goods imported to the US from other countries.
The UK’s own stock market, the FTSE 100, fell by more than 10 per cent after the news.
You must be prepared to lose it all – so only invest money you can afford to sacrifice.
You need to be willing to invest cash for at least five years to mitigate any dips and allow your money to recover. If you can’t afford to lock up your money for this long, investing may not be right for you.
It’s usually better to drip feed money into your investments instead of putting down a big chunk of money in one go.
Before you start investing, experts say you should have a minimum of six months’ of wages in a savings account before you start and only invest money you can afford to lose.
M&G Optimal Income
This fund is a “compelling option” for investors who want a reliable income stream, says McDermott. He particularly rates the manager of the fund, Richard Woolnough, and likes the well-diversified mix of income investments in the portfolio.
The fund has about half of its investments in government bonds, including those from the UK, France and US, which deliver a very reliable income. It also owns bonds issued by large companies such as Apple and Amazon.
A £100 investment would have grown to £114 over five years. Working out at an overall return of 14% or 2.66% a year.
One-stop shop funds for time-poor investors
This group of funds are also known as “multi-asset funds” because rather than focusing on one type of investment, like shares or bonds, they invest in a whole mix. This can be particularly valuable when the stock market is volatile, as it should provide some protection for your money. The idea is that not all of the assets will rise and fall at the same time, so you hopefully get a steadier investment journey.
They are called one-stop shop funds because, if you just want one fund in your portfolio that spreads your risk across lots of different things, then these might be the answer.
Vanguard Lifestrategy 60%
The Lifestrategy range of funds from Vanguard are an incredibly easy and low-cost option for investors who don’t have time to manage a portfolio. The percentage in the fund name indicates the proportion of the fund that is invested in the stock market, with five options from 20% for very cautious investors up to 100% for the more adventurous.
The 60% option is a good mid-range option for investors who want a balanced portfolio, with this proportion of the fund invested across companies in the UK, US, Asia and more, and the rest invested in government and company bonds.
A £100 investment would have grown to £132 over five years; a 32% return or 5.71% annual return.
Artemis Monthly Distribution
This invests in a mix of shares and bonds and aims to pay a regular, monthly income to investors as well as grow your money over the long-term. Watts likes that the fund has multiple managers who each focus on the asset class where they have the most skill, rather than one manager trying to do everything.
Its top investments include UK and German government bonds as well as the shares of airplane maker Airbus.
A £100 investment would have grown to £168 over five years. That’s a strong return of 68% or 10.93% a year.
Jupiter Merlin Balanced Portfolio
This fund invests in other funds, rather than directly choosing bonds or shares to invest in. This means the manager can focus on picking funds that are strong options in various areas.
“It’s a diversified one-stop shop, with between 40-85% of its portfolio in company shares, alongside bonds and other assets. The fund aims to deliver a balance of growth and income,” says McDermott.
For dividend-paying shares, it invests in the Evenlode Income fund, for gold it invests in the WisdomTree Core Physical Gold fund, and for Japanese shares it invests in the Morant Wright Nippon Yield fund.
A £100 investment would have grown to £150 over five years. This work out as a 50% return overall or 8.45% a year.
*fund returns correct as of 16 March 2026
