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Lifetime ISA

Lifetime ISA investment ideas

Our team of experts highlight some of their favourite fund ideas for the Lifetime ISA
Important information - please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. If you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances. Investing should be considered over the long-term. Money in a Lifetime ISA can be withdrawn to purchase a first home or at age 60. Early withdrawals will usually be subject to a 25% penalty.

Whether you’re investing for your first home or later life, our team of research experts have highlighted funds we believe could present promising investment opportunities for Lifetime ISAs.

Fund ideas when investing for 5-10 years

HL Multi-Manager Strategic Assets

A well-balanced fund run by our team of experts with exposure to shares, bonds and cash.

Pyrford Global Total Return

Focuses on delivering attractive long-term growth with less volatility than the stock market.

Newton Real Return

One of our favourite total return funds, managed by Iain Stewart and his team.


  • HL Multi-Manager Strategic Assets

    A flexible option combining different assets, such as shares, bonds, and cash.

    Read more

    HL Multi-Manager Strategic Assets

    • A well-balanced fund with exposure to shares, bonds and cash
    • Aims to grow capital, but with less volatility than investments focused solely on shares
    • Run by our expert team who take care of the day-to-day management

    The HL Multi-Manager Strategic Assets Fund aims to grow investors’ capital over the long term. The portfolio aims to benefit from rising stock markets but provide some shelter in market downturns. To achieve attractive returns over the long term, but with less volatility than investing only in shares, the fund is diversified across shares, bonds and cash. Remember the value of all investments can fall as well as rise, so you could get back less than you invest.

    Managers David Smith and Roger Clark blend complementary funds into a single investment. Each is carefully chosen with the whole fund in mind and designed to fulfil a particular role. We believe the results more than justify the extra costs associated with a multi-manager approach.

    The overall result is a well-balanced fund with investments in shares and bonds from across the world, including higher-risk high yield bonds, and cash. We believe the fund makes a superb choice for investors with a specific goal in mind, where they need to achieve a reasonable level of growth, but are willing to sacrifice some upside in return for a less volatile ride.

    This fund is managed by our sister company Hargreaves Lansdown Fund Managers.


    • Past performance is not a guide to the future. Source: Lipper IM to 31/03/2017

      30/03/12 - 29/03/13 29/03/13 - 31/03/14 31/03/14 - 31/03/15 31/03/15 - 31/03/16 31/03/16 - 31/03/17
      HL Multi-Manager Strategic Assets * * * * 8.65%

      *Full year data unavailable.


    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

  • Pyrford Global Total Return Focus

    Tony Cousins and his team at Pyrford embody the ‘be fearful when others are greedy and greedy when others are fearful’ philosophy.

    Read more

    Pyrford Global Total Return

    • Invests in high-quality companies, government bonds and cash
    • Focuses on delivering attractive long-term growth with less volatility than the stock market
    • Flexibility to invest a significant proportion in shares if the managers see an opportunity

    Legendary investor Warren Buffett famously advised investors to be 'fearful when others are greedy and greedy when others are fearful'. Tony Cousins and his team adopt a similar contrarian philosophy with their Pyrford Global Total Return Fund. The team targets long-term 'real' (above inflation) returns, but the starting point is aiming not to lose money over any 12-month period and to deliver returns with lower volatility than the stock market. Although like all investments, its value can go down as well as up so you could make a loss.

    While their approach is cautious at heart, they are also willing to go against the crowd often adding significantly to their stock market exposure after a fall. It can also include exposure to higher risk areas such as emerging markets. We view the fund as a good core holding for a more defensive portfolio.

    Please note, this is an offshore fund, so investors are not normally entitled to compensation through the Financial Services Compensation Scheme.


    • Past performance is not a guide to the future. Source: Lipper IM to 31/03/2017

      30/03/12 - 29/03/13 29/03/13 - 31/03/14 31/03/14 - 31/03/15 31/03/15 - 31/03/16 31/03/16 - 31/03/17
      Pyrford Global Total Return 6.3% -0.38% 6.47% 1.23% 8.4%
      IA Targeted Absolute Return 5.6% 4.7% 3.8% 0.1% 3.4%

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

  • Newton Real Return

    One of our favourite total return funds, managed by Iain Stewart and his team.

    Read more

    Newton Real Return

    • Aims to capture some gains while stock markets are rising, but shelter capital during more difficult times
    • Invests in a wide range of assets, from shares and bonds to gold bullion and cash

    Total return funds have the flexibility to take a more conservative or adventurous stance depending on their outlook for stock markets. This approach means they tend to capture some gains when stock markets are rising, but not fall to the same extent during more difficult times. Although like all investments the value will fall as well as rise so investors could get back less than they invest.

    One of our favourites is Newton Real Return, managed by Iain Stewart and his team. The core of the portfolio is invested in ‘return-seeking assets’, including shares and corporate bonds. The remainder is invested in ‘stabilising assets’ intended to dampen volatility and shelter capital. This includes government bonds, gold bullion and cash. The fund also has the flexibility to use derivatives and invest in emerging markets, which can add risk.


    • Past performance is not a guide to the future. Source: Lipper IM to 31/03/2017

      30/03/12 - 29/03/13 29/03/13 - 31/03/14 31/03/14 - 31/03/15 31/03/15 - 31/03/16 31/03/16 - 31/03/17
      Newton Real Return 8.37% 0.42% 5.61% 0.15% 1.42%
      IA Targeted Absolute Return 5.64% 4.77% 3.89% 0.15% 3.46%

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.


Fund ideas when investing for over 10 years

HL Multi-Manager Special Situations

Our favourite fund managers from across the globe in a single, convenient investment.

Woodford Equity Income

Run by renowned investor Neil Woodford, this fund will provide a way to tap into income produced by the stock market.

Schroder Small Cap Discovery

Experienced manager investing in some of the most exciting opportunities in high growth areas of the world.


  • HL Multi-Manager Special Situations

    Our favourite fund managers from across the globe in a single, convenient investment.

    Read more

    HL Multi-Manager Special Situations

    • A one-stop shop of our research team’s favourite growth funds
    • Invests globally in search of the finest fund managers
    • Monitored and managed by our own in-house team

    The idea behind the HL Multi-Manager Special Situations Trust is simple – a diversified selection of the most talented fund managers, regardless of where they invest. Roger Clark and Lee Gardhouse meet hundreds of fund managers each year, and use sophisticated quantitative analysis to identify those who they believe can consistently deliver exceptional returns for investors.

    The managers have identified great stock pickers across a variety of markets, meaning the fund includes exposure to smaller companies and emerging markets, both of which are higher risk. Like all stock market investments it will rise and fall in value so investors could make a loss.

    Investors have the peace of mind knowing that our team take care of the day-to-day management; we believe the results more than justify the extra costs involved. We view this fund as a superb choice for those looking for exposure to a global portfolio of the world’s best fund managers.

    This fund is managed by our sister company Hargreaves Lansdown Fund Managers.


    • Past performance is not a guide to the future. Source: Lipper IM to 31/03/2017

      30/03/12 - 29/03/13 29/03/13 - 31/03/14 31/03/14 - 31/03/15 31/03/15 - 31/03/16 31/03/16 - 31/03/17
      HL Multi-Manager Special Situations Trust 17.4% 9.64% 13.29% -0.36% 25.57%
      IA Global 15.68% 7.4% 16.35% -2.6% 29.43%

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

  • Woodford Equity Income

    Run by renowned investor Neil Woodford, this fund will provide a way to tap into income produced by the stock market.

    Read more

    Woodford Equity Income

    • Neil Woodford is one of the finest fund managers in the UK, with an outstanding career record spanning more than three decades
    • With this fund he aims for a combination of income and growth, investing across the entire UK market, from the giants of the FTSE 100 to higher-risk smaller firms
    • Yield 3.3% (not an indicator of future income)

    Neil Woodford has built a well-deserved reputation as one of the UK’s finest fund managers. He has a superb long-term track record, driven by his ability to combine analysis of individual company prospects with his astute reading of the economy to great effect. Although this is not a guide to future returns and like all fund managers he will go through periods where his style is out of favour.

    Around half the fund is invested in large well-established businesses such as GlaxoSmithKline, Imperial Brands and Legal & General. These companies supply goods and services consumers consider essential, which helps maintain robust sales and high dividends. Such companies have also tended to survive whatever the economic climate.

    With his CF Woodford Equity Income Fund Neil Woodford aims to deliver a combination of income and capital growth over the long term. He has the flexibility to invest across the UK market, and the fund includes significant exposure to higher risk smaller companies, including those not yet listed on the stock market.

    The fund currently yields 3.3% (not an indicator of future income). Lifetime ISA investors can choose to have this income automatically reinvested to boost future growth potential by opting for accumulation units.


    • Past performance is not a guide to the future. Source: Lipper IM to 31/03/2017

      30/03/12 - 29/03/13 29/03/13 - 31/03/14 31/03/14 - 31/03/15 31/03/15 - 31/03/16 31/03/16 - 31/03/17
      CF Woodford Equity Income * * * 2.74% 12.68%
      IA UK Equity Income 18.78% 14.52% 8.78% -0.89% 14.96%

      *Full year data not available.


    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

  • Schroder Small Cap Discovery

    The Schroder Small Cap Discovery Fund invests in some of the most exciting opportunities in high growth areas of the world.

    Read more

    Schroder Small Cap Discovery

    • Invests in smaller companies across Asia and emerging markets
    • This means exciting growth potential, but high levels of risk, so a long-term view is essential
    • Matthew Dobbs has more than two decades’ experience in this niche area

    Matthew Dobbs has been investing in Asia and emerging markets for more than 20 years. His Schroder Small Cap Discovery Fund invests in some of the most exciting opportunities in high growth areas of the world. Emerging markets are home to some of the most under-researched smaller companies in the world, making them a great hunting ground for investors seeking an information advantage.

    Asia and other emerging markets are in the midst of a transition from export-led growth to domestic consumption, led by the region’s burgeoning middle class. Matthew Dobbs therefore positions the fund towards companies he feels are best able to exploit these trends.

    A focus on smaller companies differentiates the fund from the majority of peers investing in these markets, which have a large-company bias. The combination of growth potential offered by both smaller companies and Asian and emerging markets means exciting long-term growth prospects. This also means that this is a higher risk, adventurous fund and a long term view is essential.


    • Past performance is not a guide to the future. Source: Lipper IM to 31/03/2017

      30/03/12 - 29/03/13 29/03/13 - 31/03/14 31/03/14 - 31/03/15 31/03/15 - 31/03/16 31/03/16 - 31/03/17
      Schroder Small Cap Discovery 19.56% 0.15% 19.18% -8.49% 30.68%
      IA Specialist 7.37% -4.01% 5.59% -4.23% 27.64%

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.

    Important information

    Please remember that the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. This information is not personal advice, if you are unsure of the suitability of your investment please seek advice. Tax rules can change and the value of any benefits depends on individual circumstances.


Opening a Lifetime ISA with HL

You can open an HL Lifetime ISA online in minutes and benefit from an easy to manage account with award-winning service.

  1. Make a payment
    Open with a lump sum of £100, or start saving from as little as £25 a month.
  2. Choose your investments
    Or open your Lifetime ISA with cash and choose your investments at a later date.

Find out more about the Lifetime ISA

Open a Lifetime ISA

Transfer to an HL Lifetime ISA

Get up to a £1,000 boost from the government when transferring your ISAs to our Lifetime ISA. You can transfer:

  • Help to Buy ISAs
  • Existing ISAs with HL
  • ISAs from other providers

Find out more about the Lifetime ISA

More about transferring

Frequently asked questions

  • The type of unit you hold determines how any income generated from the fund's underlying investments is treated.

    With income units, income is paid out to fund holders as cash. This could provide the investor with an income stream or the cash could be reinvested to buy additional units.

    With accumulation units income is retained within the fund and reinvested, increasing the price of the units. Generally, for investors who wish to reinvest income, accumulation units offer a more convenient and cost-effective way of doing so.


  • When you buy a fund between ex-dividend dates any income which has been generated, but not yet paid out, is included in the price you pay for each unit.

    Because of this, the first income payment you receive is made up of two separate parts. The first part is the income generated after you purchased the fund. The second part is the income which had been generated before you invested and included in the price you paid for each unit. As far as you are concerned this is not really income at all, it is a return of some of your initial investment, and your cost figure will be adjusted to reflect this return of capital. This is known as an 'equalisation' payment.


  • In the past most investors who held funds, such as unit trusts and OEICs, paid a single ongoing charge to the manager of their chosen funds. This charge often included an element of commission which the fund manager shared with brokers, such as Hargreaves Lansdown, to help pay for their service. We call these funds 'inclusive' funds.

    FCA rule changes mean that when investors purchase a fund any commission must be rebated to the investor. As a result of these rules, fund management groups have launched new versions of their funds, often with lower ongoing charges, which do not include any commission. We call these funds 'unbundled' funds.


  • You can buy funds online, over the telephone or by post. Please ensure you have read the fund's Key Investor Information Document (KIID) or Key Features first which is available from the individual fund factsheets on the website.

    Online: If you're registered for online access, simply log in and select the relevant account, such as Vantage ISA or SIPP and click the ‘Deal Now’ button. Search for your chosen fund investment and continue to the confirmation page.

    If you're not already registered but have a Master Password, you can register for online access by selecting the ‘Register’ tab at the top right of the screen.

    Telephone: Provided you have a Master Password, you can call our stockbrokers on 0117 980 9800 Monday - Friday: 8am - 9pm.

    Post: Download a dealing form from our Useful forms section and return it to: Hargreaves Lansdown, One College Square South, Anchor Road, Bristol, BS1 5HL.

    Hargreaves Lansdown does not charge a dealing commission to buy or sell funds.


  • A fund is an investment that pools together the money from many individuals. Fund managers then use it to invest in a wide range of shares and/or bonds. Each investor is issued units, which represent a portion of the holdings of the fund.