With the new tax year's ISA allowance of £20,000 now available, five investment experts have selected their top fund picks for a stocks and shares ISA. The average stocks and shares ISA is worth over £65,000, significantly higher than the typical cash ISA at under £13,500, according to industry data.
Dan Moczulski, eToro UK's managing director, noted: 'With UK inflation elevated at around 3 per cent over the past year, it's not a great time to be sitting on cash, especially given that over the past 12 months, the average stocks and shares ISA grew around 11 per cent, compared to an average return of 3.48 per cent for cash ISAs.'
Among the picks, Brodie-Smith chose the Scottish Mortgage Investment Trust, managed by Baillie Gifford. This FTSE 100 trust invests in private companies like SpaceX and Revolut, as well as public firms such as Meta, Nvidia and ASML. It trades on a 5 per cent discount with low charges of 0.31 per cent, and is suited for long-term investors with a high risk appetite. The fund rose 27 per cent in the last year and 68 per cent over five years.
Miller selected the iShares £ Index-Linked Gilts UCITS ETF, which tracks UK government bonds with maturities over 15 years. With a yield to maturity of nearly 5 per cent and a charge of just 0.1 per cent, Miller described it as 'one of the most compelling opportunities in the market.' He added: 'Locking in a yield to maturity of nearly 5 per cent inside an ISA wrapper, where all income and gains are tax-free, is exceptional by historical standards.' The fund has been flat over the last year but up 9 per cent over five years.
Agnell recommended the Man Income fund, managed by Henry Dixon and Jack Barrat. It invests in undervalued UK companies with yields at least in line with the market, focusing on cash flow and assets. The fund has risen over 10 per cent in the first two months of 2026 and was up 28 per cent in 2025, with strong contributions from banks including Lloyds, Barclays and Standard Chartered.
Maffioli picked the Murray International Trust, which offers global diversification and a solid income stream of around 3.5 per cent. The trust invests in a mix of equities and bonds worldwide.
