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Stocks & Shares ISA

ISA investment ideas

Get the insights you need to invest with confidence in your stocks & shares ISA.

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Ideas from our experts

Need help choosing the right investments? Our experts' carefully selected lists can point you in the right direction.

Quick-start
funds

Easy, straightforward investing. Six low cost funds selected by our experts. A simple way to help get you started.

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ii Super 60
 

Discover a range of quality investment options for your portfolio. We’ve done the research so you don’t have to.

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Model
portfolios

Four ready-made portfolios designed to help you meet your goals. Selected and managed by our experts.

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ii ACE 30
 

The UK’s first rated list of ethical investments - to help you invest in line with your personal values.
 

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How to decide what to invest in

What are the most common investment options?

Individual stocks and shares

When you buy individual stocks and shares, you are buying a ‘piece’ of that company. The price rises and falls in line with demand for the shares.

Share prices can be unpredictable. You may make good gains over time, or you could lose money. For this reason, only experienced investors tend to choose individual shares.

Some people invest in shares for the ‘dividend’ – a share of the company’s profits distributed to shareholders, usually twice each year. These can be very appealing, but companies may withhold dividends if they are struggling. Other investors may prefer growth stocks, which might generate a capital return rather than dividend income.

Investment trusts

Investment trusts are traded like shares, but your money is actually invested across multiple companies. This can be less risky than investing in individual shares, but there is still a risk of losing money.

Unit trusts

A unit trust is a fund which invests in multiple companies, and is then split into ‘units’ which can be traded. You buy and sell these units instead of individual shares.

As with trusts, your risk of loss is typically lower compared with individual stocks and shares.

Exchange traded funds (ETFs)

A type of fund that often tracks an index, such as the FTSE 100. ETFs may hold multiple investment types (e.g. stocks, bonds, oil, gold, currency). 

OEICs

Open Ended Investment Companies. A fund which is very similar to a unit trust, except you are buying shares in the OEIC instead of units.

What are the options for cautious investors?

As a general rule, cautious investors might choose funds and trusts, and avoid individual stocks and shares.

By spreading risk across multiple investments in a fund, you reduce the risk of losing money. Any poor-performing companies should be balanced out by better performance elsewhere in the fund.

This may be the right strategy if you are approaching retirement and want to protect your future income. This is also the time to consider a shift to lower-risk options like bonds. 

Of course, no investment is completely risk-free. You should try to diversify your investments to minimise risk, but there is always a chance you may get less back than you invested. 

What are the options for more adventurous investors?

Adventurous investors may be willing to take more risk for the chance of higher potential returns. They may choose individual stocks and shares - which are more unpredictable than funds and trusts.

However, there are also funds and trusts that take a higher-risk approach.

This approach may suit people who are earlier in their investment journey, and therefore have longer to ride out the ups and downs of the stock market.

Things to be aware of

Charges

Investment funds and trusts come with management fees (in addition to your account charges). You can find these in each fund’s Key Information Document (KID).

These fees typically range from 0.25% to 1.8% and  are usually taken from the value of your investments – not paid up-front. 

Tax rules

A stocks & shares ISA lets you invest up to £20,000 each tax year without paying any tax on the gains. You can only have one stocks & shares ISA at a time.

You can invest any remaining funds in a Trading Account, but you may have to pay tax when you buy or sell the shares.

Risks when investing

Remember, all investing comes with a risk of losing money. You can reduce this risk by spreading your investments across multiple options, but there are no guarantees. You should never invest money that you can’t afford to lose.

Other investment options

Ethical stocks & shares ISA

Many investors are looking to build portfolios that reflect their values, while still delivering growth. Our experts have identified a range of ethical investment options to help you.

AIM ISA

AIM stands for Alternative Investment Market. AIM shares can be more volatile than other investments, but some investors include them to add some higher-risk diversification to a balanced portfolio. These shares may be more likely to lose money than other shares.

Latest investment news and ideas

17 July

Uptick in young people opening stocks and shares Isas

A growing number of people in their 20s and 30s are choosing to invest their savings.

by Tom Bailey

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Risk Warning: The price and value of investments and their income fluctuates: you may get back less than the amount you invested. If you are unsure about the suitability of a particular investment or think that you need a personal recommendation, you should speak to a suitably qualified financial adviser. Please note, the tax treatment of these products depends on the individual circumstances of each customer and may be subject to change in future. If you are uncertain about the tax treatment of the products you should contact HMRC or seek independent tax advice.