How to Make the Most of Your Fund Supermarket ISAs in 2021

POSTED ON Thursday, 07 January, 2021

If you are looking for a easy way to manage your ISA investments then a Fund Supermarket may be right for you.  When looking to for an Investment ISA, this can be a great place to start. 

Are you shopping for a supermarket ISA? 

There are quite a lot of fundsupermarkets to choose from, so it’s important to do your shopping around when looking for the right one for you.

What is a Fund Supermarket?

A Fund Supermarket ISA account is an ISA which allows you to invest in a wide variety of different investments in one place.

Due to the ISA status of these accounts, you can invest up to £20,000 tax-free each tax year. The returns from this investment will be safe from the tax man, because an ISA is a tax-free wrapper.

What should I be looking for?

There’s quite a lot you need to consider when looking for a good fund supermarket ISA.

A good fund supermarket will offer:

  1. Low cost index tracker funds – An easy and popular way to invest that follows the performance of a particular stock market
  2. Actively managed funds – A good way to invest in a particular sector or region
  3. Multi asset funds- A range of funds that invest in other funds (a fund-of-funds) or funds where assets are made up of a portfolio of company shares, bonds and cash (a mixed investment range)
  4. Income funds – Invest in funds lending money to a government or company, in return for an agreed level of interest over a set period
  5. Property funds – Funds that invest in commercial property
  6. Direct investment accounts, ISA accounts and SIPP account options
  7. Share dealing account options

Our Top Picks for Fund Supermarket ISAs in 2020/2021

Interactive Investor Stocks and Shares ISA »

This is an award-winning ISA: and with it, you get a lot of control. It’s protected by FSCS and allows you to invest from £25 per month, or from £100 lump sum. It’s also very user-friendly platform for picking investments, allowing you to open an account online in 10 minutes (or less). It offers a low cost fixed monthly fee service, expert independent analysis of the market as well as investment ideas in video format. They allow ISA transfers.

Fidelity Stocks and Shares ISA »

This fund allows you to invest from £50 per month or with a £1000 lump sum. It offers a wealth of fund providers – over 100 providers, with over 2,000 funds to choose from. Their service fee is low (0.35% depending on investment) and it is easy to use their website. They also offer access to useful tools to help first time investors get their head around the process.

Hargreaves Lansdown Stocks and Shares ISA »

This fund is FSCS protected and allows you to invest from as little as £25 per month, with a choice of over 2,500 funds for you to examine and chose between. It’s a very low cost option as well as being an award-winning option – making it a great choice for any investor. It is currently the UK’s number 1 platform for private investors, and is available from Hargreaves Lansdown.

AJ Bell Investment Fund ISA »

This fund is a great option for someone looking to invest online. You can invest £25 per month, which makes this a low cost investment option. You’ll first need to open an account and then you’ll need to look at the funds. With this account you have plethora of funds to choose from: over 2,000. With so many accounts to choose from, it’s useful that AJ Bell have created a list of their favourite funds to help you choose the funds you want.

Read more about Fund Supermarket ISAs here. 

Important information – Unlike cash, the value of investments, and any income from them, can fall as well as rise so you could get back less than you invest. Our service, which is not personal advice, is designed for investors who are happy making their own investment decisions. If you’re unsure of the suitability of an investment please seek advice. Tax rules can change and the value of any benefits depends on your personal circumstances.