Most popular Lifetime ISA Funds

The end of tax year deadline of 5 April is just around the corner. It’s the time lots of savers and investors take advantage of their ISAs to shelter their savings and investments from UK tax.

If eligible, it’s a great time to make the most of your Lifetime ISA (LISA) allowance, too. You can put up to £4,000 in a LISA every tax year, and the government will top up your contribution by 25% – giving you up to an extra £1,000.

You can use your LISA either towards the purchase of your first home (up to £450,000) after 12 months from the first payment, or towards later life. You can open a LISA if you’re between 18 and 39 years old. Once open, you can continue to contribute up to £4,000 per year, and get the government bonus, until age 50.

Remember that any withdrawals made before the age of 60, which aren’t used towards the purchase of a first home, will normally be subject to a 25% withdrawal penalty, so you could get back less than you put in. And if you’ve made any gains on your investments or received any interest on your cash, you’ll be charged 25% of them, too.

Remember, if you decide to opt out of your workplace pension to pay into a LISA, you won’t benefit from any employer-matched contributions and it may affect your current or future entitlement to means-tested state benefits.

Tax rules change and benefits depend on your individual circumstances. This article is not personal advice. If unsure, please seek advice.

More about LISAs

Some LISAs will allow you to invest the money you put in, in the stock market, whereas others will just let you hold cash.

Lots of HL clients have chosen to invest with their LISA, but where have they been investing most of their money this tax year?

Where did HL’s Lifetime ISA clients invest?

The list below shows the most popular funds (the most bought funds after any sales) with HL’s LISA investors in this tax year (2019/20) and is correct as of 17 March 2020. It isn’t personal advice or a guide on how to invest. You should choose investments based on your own objectives and attitude to risk.

Unlike the security offered by cash, investment values can fall as well as rise, so there’s no guarantee you’ll make a profit – you could get back less than you put in. If you’re not sure whether an investment is right for you, please ask us for advice.

Funds are listed in alphabetical order. LF Lindsell Train Global Equity and LF Lindsell Train UK Equity hold shares in Hargreaves Lansdown plc. The HL Select Global Growth Shares fund is managed by our sister company HL Fund Managers Ltd.

Editor’s choice: our weekly email

Sign up to receive the week’s top investment stories from Hargreaves Lansdown

Please correct the following errors before you continue:

Existing client? Please log in to your account to automatically fill in the details below.

Title:

Please select... Mr Mrs Miss Ms Mx Dr Sir Rev

First name:

Last name:

Email address:

Main phone number: (optional)

Mobile phone number: (optional)

Date of birth: (optional)

01 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31 Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Title:

First name:

Last name:

Address:

Email address:

Where did you hear about us?

Please select... Advert in the press HL mention in the media Advert on another website HL mention on another website Existing client Recommendation from a friend Mobile application Search Engine / Research

Hargreaves Lansdown would like to contact you about the services we offer which may be of interest to you. We explain how we use your personal data in our Privacy Policy.

If you would rather not hear from us, please tick the relevant box(es) below:

Email - no thanks, please don't contact me via email

Post - no thanks, please don't contact me via post

Phone - no thanks, please don't contact me via phone

Register

This site is protected by reCAPTCHA and the Google Privacy Policy and Terms of Service apply.

Your postcode ends:

This is my postcode

Not your postcode? Enter your full address.

Hargreaves Lansdown PLC group companies will usually send you further information by post and/or email about our products and services. If you would prefer not to receive this, please do let us know. We will not sell or trade your personal data.