HMRC figures released in June underlined the importance of ISAs. Looking at the annual savings figures, the number of people who opened an ISA in the 2021/22 tax year:
- More people paid money into a Stocks and Shares ISA than any other year since 2008/09 – almost 4 million people.
- For the 10th year running, women opened more ISAs than men. But they continue to lean towards adding money to a Cash ISA.
- 662,000 people opened a Lifetime ISA, which is also a new high despite being relatively new to the ISA family.
This visualisation uses dynamic bar charts to illustrate the rising proportion of women opening ISAs relative to men over time.
READ MORE ON THE LATEST HMRC ISA STATS
Importantly, taxes on savings and dividends will top £24 billion this year.
Rising interest rates mean more savers will have to pay tax on their interest. Expecting to total £6.6 billion – this is more than five times the figure two years ago.
The rest will be made up from taxes on dividends. After the government halved the annual tax-free dividend allowance to £1,000 from 6 April 2023, this is expected to climb to £17.6 billion this year.
It reminds us that taxes change and so will their impact on you and your family's future. Now could be a great time to review your finances to see if you could benefit from tax shelters, like an ISA. Tax rules can change and any benefits will depend on individual circumstances.
FIND OUT MORE ABOUT ISAS INCLUDING CHARGES
Where did HL's Stocks and Shares ISA clients put their money in June 2023?
Below we look at the most bought actively-managed funds trying to beat the market and tracker funds trying to track the market, by HL's ISA investors in June 2023. 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 June | Key Investor Information |
|---|---|
| Fundsmith Equity | KII |
| Rathbone Global Opportunities | KII |
| Baillie Gifford American | KII |
| Fidelity Global Technology | KII |
| Jupiter Asian Income | KII |
Information correct as at 3 July 2023.
| Most bought tracker funds in June | Key Investor Information |
|---|---|
| Legal & General US Index | KII |
| UBS S&P 500 Index | KII |
| Legal & General International Index Trust | KII |
| Fidelity Index World | KII |
| Legal & General Global Technology Index Trust | KII |
Information correct as at 3 July 2023.
How to pick investments for an ISA
Investing in 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.
FIND OUT MORE ABOUT DIVERSIFICATION
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.
If you don't feel comfortable building and maintaining a portfolio, take a look at our ready-made portfolios. These portfolio funds let you choose how to balance risk and potential returns.
All you'll need to do is review your investments regularly to make sure they still meet your needs and objectives.
HL's ready-made investments are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.
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