Top 10 stocks and funds that ISA investors have been buying

Here are the investments that early bird ISA investors have been adding to their portfolios recently, according to Hargreaves Lansdown.

| More on:

Image source: Getty Images

When investing, your capital is at risk. The value of your investments can go down as well as up and you may get back less than you put in.

Read More

The content of this article is provided for information purposes only and is not intended to be, nor does it constitute, any form of personal advice. Investments in a currency other than sterling are exposed to currency exchange risk. Currency exchange rates are constantly changing, which may affect the value of the investment in sterling terms. You could lose money in sterling even if the stock price rises in the currency of origin. Stocks listed on overseas exchanges may be subject to additional dealing and exchange rate charges, and may have other tax implications, and may not provide the same, or any, regulatory protection as in the UK.

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More.

Investment platform Hargreaves Lansdown has revealed that the number of investors paying into their Stocks and Shares ISA in the first 10 days of the tax year has increased by 10%.

It also said there had been an almost 31% rise in early bird savers maxing out their annual ISA allowance!

Emma Wall, head of investment analysis and research at Hargreaves Lansdown, said: “Investor confidence is clearly alive and kicking – and while the cost-of-living crisis continues to bite, early bird stats show investors are prioritising making their savings as tax efficient as possible.”

The firm classes early bird clients as those who invest in the first 10 days of the tax year, up to and including 15 April.

The top 10 investments

Here’s what these ISA investors have been buying:

1Legal & General US Index
2Legal & General Group
3Jupiter India
4Fundsmith Equity
5Fidelity Index World
6Legal & General International Index Trust
7Rathbone Global Opportunities
8Legal & General Global Technology Index Trust
9Aviva
10Lloyds Banking Group

The four key investing themes here are global funds, India, technology, and financial stocks.

Unfortunately, I don’t have a spare £20k knocking about to immediately max out my allowance. I say ‘unfortunate’, but I actually prefer to spread my investments across the year.

This way, I don’t have to worry about the market tanking straight after I invest my £20k. I can take advantage of opportunities in my ISA as and when they arise.

India on my mind

Looking at that quartet of investing themes, which interests me the most?

Well, I already hold a load of US tech stocks. And I’ve been adding HSBC shares to my ISA to sit alongside Lloyds and Bank of Georgia.

I’ve also been buying Aviva and Legal & General shares for the high-yield dividends. So I have tonnes of exposure to the financial sector.

However, India does interest me. Its economy grew 6.5% in 2022 then another 7.7% last year. That was the highest annual growth rate among G20 countries, according to the Organisation for Economic Co-operation and Development.

Over the next three years, India is tipped to become the third-largest economy in the world, with a GDP of $5trn. So it doesn’t surprise me that savvy investors are allocating to India. I’d like to do the same.

My pick

I’ll have to dig into the Jupiter India fund to see what I’m missing. But my preferred strategy is to get broad-based Asia exposure.

One stock I hold is Pacific Horizon Investment Trust (LSE: PHI). This FTSE 250 fund aims to achieve capital growth by investing across the Asia-Pacific region (excluding Japan) and the Indian subcontinent.

As of 31 March, Pacific Horizon had nearly 28% of total assets in India. So there is a fair bit of exposure here, but then also China (22.1%) and Korea (9.4%) too. I like this diversification.

Top holdings include Samsung Electronics, TSMC, and Indian logistics firm Delhivery.

One risk here is the potential for wild swings in regional currencies. This could impact the value of the trust’s assets.

However, it has easily outperformed its benchmark (the MSCI All Country Asia ex Japan Index) over the long term. As of 31 March, it had returned 256.8% over 10 years versus the index’s 104.8%.

Of course, past performance is no guarantee of future returns, but this stellar record gives me great faith in the managers. I plan to increase my India exposure through buying more Pacific Horizon shares.

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.

HSBC Holdings is an advertising partner of The Ascent, a Motley Fool company. Ben McPoland has positions in Aviva Plc, Bank Of Georgia Group Plc, HSBC Holdings, Legal & General Group Plc, Lloyds Banking Group Plc, Pacific Horizon Investment Trust Plc, and Taiwan Semiconductor Manufacturing. The Motley Fool UK has recommended HSBC Holdings, Hargreaves Lansdown Plc, Lloyds Banking Group Plc, and Taiwan Semiconductor Manufacturing. 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.

More on Investing Articles

Group of young friends toasting each other with beers in a pub
Investing Articles

Taylor Wimpey just paid me £158.78. I’m aiming to turn that into a £100k yearly second income

Harvey Jones says small, regular dividend payments can turn a few pounds into a mighty second income, if he gives…

Read more »

A pastel colored growing graph with rising rocket.
Value Shares

These FTSE 250 shares are tipped to rise 14% to 18% in the next year!

Looking for the best FTSE 250 momentum shares to buy? Here are two that City analysts expect to soar in…

Read more »

Young mixed-race woman jumping for joy in a park with confetti falling around her
Investing Articles

Lloyds’ share price is up 20% in 3 months! How high can it go?

Lloyds’ share price has ripped higher recently. Here, Edward Sheldon provides his view on the level it could potentially climb…

Read more »

Investing Articles

Why the Rolls-Royce share price could continue to outperform

The Rolls-Royce share price keeps moving forward, but this Fool thinks it's still behind where it ought to be after…

Read more »

Fireworks display in the shape of willow at Newcastle, Co. Down , Northern Ireland at Halloween.
Investing Articles

The City expects explosive growth in earnings from this almost-penny stock

It’s rare to find earnings predictions as robust as those for this not-quite-a-penny stock, so I’d research and consider it…

Read more »

Investing Articles

As earnings rise 600%, is Nvidia still the best AI stock to buy?

With the supply and demand equation still looking strong for Nvidia, is the stock still the best AI opportunity for…

Read more »

Value Shares

Cheap UK stocks are soaring! Here’s 1 to consider buying now

In recent weeks, many UK stocks have surged. Here, Edward Sheldon highlights a blue-chip FTSE 100 share he believes could…

Read more »

Investing Articles

Top alternatives to consider as the IAG share price climbs!

I've been bullish on IAG shares for some time, but as the IAG share price pushes upwards from its pandemic…

Read more »