My best Stocks and Shares ISA investments for 2021 and beyond

My best Stocks and Shares ISA investments for 2021 and beyond are those companies with the potential to generate strong returns.

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The end of the tax year is rapidly approaching, which means investors are running out of time to use their ISA allowance for the year. With that in mind, I’ve recently been seeking out the best Stocks and Shares ISA investments for 2021 and beyond to add to my portfolio. 

Best Stocks and Shares ISA investments

Due to the tax-efficient nature of ISAs, I believe they’re more suitable for holding some investments than others.

Any income or capital gains earned on investments held inside an ISA wrapper doesn’t attract any tax liabilities. This can be especially helpful for higher rate taxpayers, although it will vary from person to person. When considering tax obligations, there’s never a one-size-fits-all solution. 

Still, I believe that the best Stocks and Shares ISA investments are those companies that can generate capital growth and produce a steady income stream over the long term. 

I want to focus on companies that I know well and produce products with a substantial consumer following. These include organisations such as AG Barr and Britvic

The former manufactures and sells the Irn-Bru brand. While the latter owns the rights to the Robinsons and Fruit Shoot brands, among others. Britvic also holds a Royal Warrant, which means it’s the fruit juice and soft drinks supplier of choice to the Royal Households.

These companies do face challenges though. The sugar tax and uncontrollable ingredient costs have hurt profit margins.

However, I think they’ve plenty of opportunities as well. The UK soft drinks market is expected to grow by around 2.5% per annum every year for the next five years. AG Barr and Britvic should be able to capitalise on this growth.

The groups also have a good record of returning cash to investors through share buybacks and dividends when profits are high. There’s no guarantee this trend will continue, but I think it showcases both companies’ desire to reward investors. 

These are some of the reasons why I believe they’re the best Stocks and Shares ISA investments for 2021 and beyond. That’s why I’d add them to my portfolio today.

Market leader 

I’d also buy financial services group IG for my ISA before the end of the tax year. This company, which started out as a spread betting provider, has expanded rapidly over the past few years into areas such as stockbroking. It’s now expanding overseas. The organisation recently announced a large deal that will significantly expand its presence in the US. 

As the company continues to invest in growth, I think it could produce large capital returns. However, this is far from guaranteed. In the highly controlled financial services industry, regulators can dictate the success or failure of a corporation overnight. That has happened to IG in the past. Regulators banned the selling of highly leveraged trading products to retail investors several years ago, and the firm’s sales plunged. 

Despite these risks, I’d buy the stock for my portfolio today. As IG builds its brand across the world, I reckon the business is only just getting started. 

Should you invest, the value of your investment may rise or fall and your capital is at risk. Before investing, your individual circumstances should be assessed. Consider taking independent financial advice.

Rupert Hargreaves owns no share mentioned. The Motley Fool UK has recommended AG Barr and Britvic. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.

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