What is the Best Investment ISA? Top Picks In 2020-21
There is a lot of choice when it comes to picking an Investment ISA to make use of your tax-free allowance for this year. There is a wide scope of different platforms offering a lot of variety for you to pick and choose from. So, the question emerges: what is the best investment ISA for you? We've put together the questions you should be asking, in order to get your answer.
Before looking at the best available deals, its important to point out that the “best” investment ISA deal is subjective. It's less about finding the "best" Investment ISA, but about finding the best one for you. When looking to get the best possible investment ISA deal, you're going to want to evaluate certain considerations first.
Our top five considerations to think about are:
- Don’t just pick the cheapest option you can see – the cheapest advertised option might not end up being the cheapest overall
- Where do you want to put your money? With a wide scope of choice, you should investigate not only your desired platform but also your desired funds.
- What kind of tools and research opportunities do platforms offer?
- How much are you investing?
- What added costs (and potential savings) are you looking at?
Our Top Picks for Investment ISAs in 2020
This is available via Fidelity Fund Supermarket; it's a very low cost FTSE 100 Tracker ISA with a 0.07% per annum charge. The product has historically had a record of tracking the benchmark to a high level of accuracy. Any income generated is reinvested, leading to compound interest.
This is a low cost FTSE 250 tracker with an annual charge of 0.18% per annum. FTSE 250 are medium companies which offer an exciting opportunity for investing in companies with growth potential. Available via Hargreaves Lansdown Fund Supermarket, HSBC boasts lots of experience running tracker investment funds.
This fund tracks the performance of the MSCI World (Net Total Return) index and by doing this, hopes to increase the value of your investment over a period of five years. This is a low-cost (and easy) way to begin investing in the stock market and spread risk across lots of different shares. Available via Fidelity Fund Supermarket this fund has a low 0.1% ongoing charge.
Higher income usually means higher risk when it comes to investing - but if you are comfortable with that, then this fund-managed ISA might be for you. This fund focuses on high-yield bonds and shares, guided by an experienced bond investor. The current income distribution yield is an attractive 4.83% paid monthly. If you're interested in this account, this is available via Hargreaves Lansdown Fund Supermarket.
Many people want their investments to marry with their convictions; for these individuals, an ethical ISA is the way to go. This is a low-cost option with a 0.25% per annum charge. This fund generates growth by tracking the performance of the FTSE 350 Index . However, companies whose ethical and environmental guidelines do not pass 'ethical screening methodology' will not be included. This is determined by the fund manager, and this fund is available via Hargreaves Lansdown Fund supermarket.
With these in mind, we’d recommend you follow the following steps in order to find and secure the best Investment ISA for you:
- Step 1: Look at your finances and answer some key questions
- Step 2: Choose your preferred management style
- Step 3: Think about your risk profile
- Step 4: Shop around
- Step 5: Choose your account
- Step 6: Approach your provider and open your account