The 2024 Spring Budget is likely to be the final fiscal event before the next general election.
In a bid to win over voters heading to the polls, there’s been speculation about tax cuts, as well as potential reforms to the Lifetime ISA (LISA).
In less welcome news, the capital gains tax allowance (the amount you can earn in profit tax-free) is halving from £6,000 to £3,000 in the coming tax year. And so is the dividend tax allowance, from £1,000 to £500.
With this in mind, a Stocks and Shares ISA is one of the most tax-efficient ways to invest. You don’t have to pay UK income or capital gains tax on investments held in an ISA. And you can pay in up to £20,000 into one this tax year as part of your ISA allowance.
With tax year end approaching on 5 April, there’s no better time to review your investments to see if you could benefit from tax wrappers, like an ISA.
Here’s where HL’s ISA clients were investing last month.
Remember, tax and ISA rules can change, and any benefits will depend on your individual circumstances.
Where did our Stocks and Shares ISA clients invest their money in February 2024?
Here’s a look at the most bought actively-managed funds (trying to beat the market) and tracker funds (trying to track the market), by our Stocks and Shares ISA investors in February 2024. This is by number of trades minus any sales.
This article has been written independently of our investment research team to offer some inspiration but isn't personal advice or a guide on how or where to invest.
Unlike cash, investments will rise and fall in value, so you could get back less than you put in. You should choose investments based on your own objectives and attitude to risk. If you're not sure whether an investment is right for you, ask for financial advice.
Most bought active funds in February | Key Investor Information |
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Most bought tracker funds in February | Key Investor Information |
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Funds listed alphabetically.
HL funds are managed by our sister company Hargreaves Lansdown Fund Managers Limited.
How to pick investments for an ISA
Investing in these funds won't be right for everyone. Only invest in a fund if its objectives align with your own, and there's a specific need for that type of investment within your portfolio. Investors should understand the specific risks of a fund before they invest and be investing for the long term (five years or more).
It's also important not to put all your eggs in one basket. Spreading your money and diversifying, gives you access to more opportunities and can reduce risk.
If you're looking for inspiration from our investment research team on where to invest your ISA this tax year, explore our latest ISA investment ideas.
Or you can use our Wealth Shortlist.
It's designed to help investors build and maintain a well-balanced and diversified portfolio. We've put funds under the microscope to make sure the list only contains the funds that our in-depth analysis shows have the greatest long-term performance potential.
Leave day-to-day investment decisions to the experts
If you’ve got a Stocks and Shares ISA and want a team of experts to look after the day-to-day investment decisions, consider a Ready-Made ISA.
You can choose from four ready-made investments, letting you choose how to balance risk and potential returns.
All you'll need to do is check in on your investment from time to time to make sure it still meets your needs and objectives.
HL Ready-Made Investments are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.
It's quick and easy to open an ISA and takes just minutes online.
If you get started before the tax year deadline on 5 April, you could make the most of this year’s £20,000 ISA allowance.
Before you apply, please make sure you're happy with our terms and conditions (including Tariff of Charges) and key features. Then all you need is your debit card and National Insurance number to hand.
Although this is changing in the new tax year, right now you can’t pay into more than one of the same type of ISA in the same tax year. But you can split your ISA allowance in any proportion you wish between the different types so, for example, you could invest £10,000 in a Stocks and Shares ISA and the remaining £10,000 in a Cash ISA.