Interactive Investor

10 hottest ISA shares, funds and trusts: week ended 8 March 2024

In this series of articles, we reveal the 10 most-popular shares, funds and investment trusts added to ISAs on the interactive investor platform during the past week.

11th March 2024 12:25

Lee Wild from interactive investor

With ISA season under way and tax year-end fast approaching, we look at the investments ii customers have been buying within their ISAs during the previous week. The data includes only real-time trades, not regular investing instructions, and combines the use of both existing funds and new money. 

Top 10 shares in ISAs

US stocks enjoyed a surge in popularity last week, with NVIDIA Corp (NASDAQ:NVDA) racing four places up the table to top spot.

Buying was steady throughout the week but peaked on Friday. That coincided with the stock price hitting a record high at $974 early in the session – up 18% from its closing price the week before – but ending the day down 5.5% following a late-morning sell-off. There was a further exodus in after-hours trade.

Tesla Inc (NASDAQ:TSLA) is back in the top 10 as share price falls continue to attract bargain hunters. The stock is now down around a third in 2024 and trades at its lowest since May 2023.   

Analysts at Morgan Stanley last week reduced their price target on the stock from $345 to $320, citing a deceleration in demand for electric vehicles (EVs) despite price cuts, with fleets dumping EVs and with hybrid’s competing for the marginal EV buyer. The broker expects half-year results to disappoint and for the company to rethink its strategy on price cuts to defend margins and cash flow.

However, “amidst the seemingly overwhelming bearish institutional investor sentiment” Morgan Stanley retains its ‘overweight’ rating on Tesla shares. It sees the company as both an auto stock and an energy, AI/robotics company, with the $320 per share valuation including just $68 for the core auto business.

“Negative developments in the global EV market very much matter to Tesla and should reasonably have a negative near-term impact on the price of the stock,” it says. “At the same time, however, we believe investors should not ignore the continued developments of Tesla’s other plays, many of which are auto related.”

These “other plays” include recurring revenue opportunity from the Tesla fleet plus its Optimus general-purpose robotic humanoid which isn’t factored into this valuation.

Excitement at software company and bitcoin play MicroStrategy Inc Class A (NASDAQ:MSTR) continues. The stock surged another 32% last week as the price of bitcoin raced above $70,000. The company announced it is raising another $600 million to buy more of the cryptocurrency.

Elsewhere, buying interest in Aviva (LSE:AV.), Legal & General Group (LSE:LGEN) and HSBC Holdings (LSE:HSBA) means no place again for Lloyds Banking Group (LSE:LLOY), which remains just outside the top 10 in 11th place.

Top 10 funds and trusts in ISAs

Normally, the weekly most-bought fund and trust list is topped by a global or US strategy, such as a tracker fund from BlackRock or Vanguard, or a large active fund such as Scottish Mortgage Ord (LSE:SMT) or Fundsmith Equity.  

But last week, a more niche part of the investment world claimed the coveted top spot: Indian equities. 

The fund, of course, was Jupiter India, the star of the sector with £1.3 billion invested and an excellent record of outperformance. It has regularly featured in the top 10 most-bought funds list over the past 12 months and recently moved from second to first place.

The fund has risen 15.5% year to date, making it the top-performing Indian equity open-ended fund. Over five years, it has risen 113%, well ahead of the 77% return for the average peer.  

Other significant fund and trust movers last week included Scottish Mortgage (rising three places to third), Greencoat UK Wind (LSE:UKW) (up three places to seventh), and Alliance Trust Ord (LSE:ATST) and City of London Ord (LSE:CTY), which each dropped down two places to land in ninth and 10th respectively.  

A new addition was Polar Capital Technology Ord (LSE:PCT) trust. Boosted by excitement around artificial intelligence, shares are up 17% this year, with the discount narrowing from around 15% to 10% over the past four months.  

Funds and trusts section written by ii’s deputy collectives editor Sam Benstead.

These articles are provided for information purposes only.  Occasionally, an opinion about whether to buy or sell a specific investment may be provided by third parties.  The content is not intended to be a personal recommendation to buy or sell any financial instrument or product, or to adopt any investment strategy as it is not provided based on an assessment of your investing knowledge and experience, your financial situation or your investment objectives. The value of your investments, and the income derived from them, may go down as well as up. You may not get back all the money that you invest. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.

Full performance can be found on the company or index summary page on the interactive investor website. Simply click on the company's or index name highlighted in the article.

Please remember, investment value can go up or down and you could get back less than you invest. If you’re in any doubt about the suitability of a stocks & shares ISA, you should seek independent financial advice. The tax treatment of this product depends on your individual circumstances and may change in future. If you are uncertain about the tax treatment of the product you should contact HMRC or seek independent tax advice.