How can a Stocks and Shares ISA investor get started in 2024?
I’ve had an ISA for years now, and I know my strategy. But I still believe that listening to all the opinions I can find is a good idea.
So I’ve been checking on what the experts say about ISAs, and about investing in UK shares, as we head to the New Year.
People are often held back by a number of myths. And I’m happy to see Hargreaves Lansdown exploding a few of them.
For the rich?
Folks often think shares are only for the wealthy, and that they haven’t got enough to buy shares.
Well, Hargreaves Lansdown lets us open an ISA with as little as £100, or monthly direct debits as modest as £25. AJ Bell is similar, with a minimum £500 lump sum, or the same £25 monthly direct debit.
I’ve picked those two just because I know them — most ISA providers have very similar deals.
And, we don’t need to make a purchase right away. We can build up cash in our ISA until we have enough for a cost-effective investment.
Mid-cap shares?
The people over at IG remind us that, though the Bank of England base rate has peaked at 5.25%, it’s likely to stay high for some time yet.
They also reckon that a lot of mid-cap shares look undervalued, and I’m seeing the same thoughts from others too.
So, maybe the FTSE 250 might be a good place to look for ISA shares in 2024.
Over the long term, the smaller index has easily beaten the FTSE 100. But it’s fallen back in the past couple of years.
Bigger might not be better
I’m always cautious when I compare stock market indexes. Unless we go for a tracker, we don’t buy an index. We buy shares in individual companies.
So I choose based on company performance and stock value, not on what index it’s in. In this case, I want to beware of not seeing the trees for the wood.
Still, if I should put some money into a tracker in my ISA next year, I think I might go for a FTSE 250 one.
Best shares to buy?
Which individual stocks are the experts highlighting for 2024?
Interestingly, Rolls-Royce Holdings seems to be a popular choice. And that’s even after the share price has trebled in the past 12 months.
A lot of commentators point to stocks paying high dividends as possible picks for next year. And, even if forecasts are tightening a little, they still suggest dividends should keep growing in the next two years.
Fidelity has HSBC Holdings and National Grid among its top dividend picks. And I like both of those.
Common thoughts
Everyone has their own Stocks and Shares ISA favourites for 2024 and beyond.
But the one thing everyone seems to agree on is that we should use as much as we can of our ISA allowance, and start investing as early as possible.
