Isas are an investment for all seasons — encouraging a savings habit when we are young, providing security in middle age and offering tax-free income when we retire.
So what’s worth looking at for your £20,000 allowance if you’re investing before the end of the tax year on April 5?
I asked financial advisers for ideas covering three scenarios: the lump sum investor who’s concerned about Brexit uncertainty; the retired person who wants to generate a long-term income; and the younger investor who is willing to leave their money a long time and can afford to take a bit of a punt.
Picks: Newton Global Income concentrates on large companies offering a dividend yield. For a UK-based option, Troy Trojan Income is paying a yield of more than 4 per cent
Funds for adventurous investors
But what if you’re younger and want something a bit livelier for part of your allowance?
Ben Yearsley, director of Shore Financial Planning, said he would look at splitting £10,000 two ways. ‘I’d have an Asian/emerging market fund and then something like a higher-risk global fund.
‘Both will be volatile and, therefore, you have to buy and ignore it when it inevitably falls in value. Buy for the next decade or more!’ urges Mr Yearsley.
‘I’m a big fan of these markets for higher-risk, long-term investors. They still look cheap, and growth is better long term.
‘Growing middle classes, young and increasing populations and lower debt — all these are reasons to buy.’
First State Asia Focus is a broad-based Asian fund, while Lazard Emerging Markets covers that sector. For a racier option, look at Matthews Asia China Small Companies.
For a mainstream, high-risk global fund, Mr Yearsley suggests Scottish Mortgage Investment Trust or LF Blue Whale Growth.
‘Scottish Mortgage has a mix of listed and unlisted companies, with many tech companies and disrupters. It is run by one of the best investment fund managers, James Anderson.
‘Blue Whale is a focused global growth portfolio that is only 18 months old, but has had a tremendous start.’