Stocks and Shares ISAs: where to invest?

Investing can help people make more of their money and grow their wealth over time.

In fact, for 91% of 10-year periods, investments in shares have done better than holding cash. Remember past performance isn’t a guide to the future. But before getting started, there are three things that everyone should be clear on.

• You should only think about investing if you’ve already built-up cash savings for emergencies.
• You should be clear on the differences between saving and investing. Saving tends to be for the short term, while investing is for the longer term (5 years or more).
• All investments involve risk, as they go up and down in value. While this can present opportunities over the long term, it also means you could get back less than you invest.

To start investing, you’ll need an account. The HL Stocks and Shares ISA is our most popular option, or you can choose from a range of accounts if you don’t already have one set up.

Once held in a Stocks and Shares ISA, your money is sheltered from UK income and capital gains tax. But tax rules can change, and benefits depend on individual circumstances.

Find out more about Stocks and Shares ISAs

The best place to invest will depend on your circumstances and goals. But if you’re looking for inspiration on where to invest this year’s ISA allowance, here are some ideas to get you started.

This article isn’t personal advice. If you’re not sure what’s right for you, ask for financial advice.

The only investment you’ll ever need?

Not everyone can spend time researching and managing their investments.

If you’d like a team of experts to look after the day-to-day investment decisions on your behalf, a ready-made option could be worth looking in to.

We offer four to choose from. Each can be used as an all-in-one investment: pick from the different risk levels and you’re good to go.

You’ll just need to check in every now and then to make sure it still meets your needs and circumstances.

Learn more about ready-made investments

Build your own ISA

If you’re confident building your own diversified portfolio of ISA investments, you can choose from different funds, investment trusts, Exchange Traded Funds (ETFs) and more.

Our research experts recently selected some investment ideas for a monthly Direct Debit. You can get started from £25 a month.

Find out more about each of the picks, and what the story of the tortoise and the hare can teach us about investing.

See our latest investment ideas for a Direct Debit

Popular Stocks and Shares ISA investments in July 2023

The summer holidays haven’t stopped HL ISA investors buying investments.

While it can be interesting to see what’s popular, you shouldn’t pick your own investments based on the choices of others.

So here are the most bought actively-managed funds (investments that try to beat the market), tracker funds (investments that try to track the market), investment trusts and shares in July 2023 (HL Stocks and Shares ISA investors only). These numbers are based on the 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.

*HL Global Corporate Bond is a new fund and launched in July* Information correct as at 1 August 2023.

Information correct as at 1 August 2023.

Investing in funds won't be right for everyone. Only invest in a fund if its objectives align with your own, and you have a specific need for that type of investment. Investors should understand the risks of a fund before they invest and aim to invest for the long term (five years or more).

Investing in individual shares isn’t right for everyone. That's because it's higher risk and your investment depends on the fate of that company. If that company fails, you risk losing your whole investment. If you cannot afford to lose your investment, investing in a single company might not be right for you. You should make sure you understand the companies you're investing in and their specific risks.

Wherever you’re investing, it’s important not to put all your eggs in one basket. Diversification gives you access to more opportunities and can reduce risk.

Find out more about diversification

The HL fund ranges are managed by our sister company Hargreaves Lansdown Fund Managers Ltd.

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