Please note that tax, investment, pension and ISA rules can change and the information and any views contained in this article may now be inaccurate.
Some fund investors have been going for growth in their AJ Bell Youinvest ISA so far this year, filling their tax shelters with a raft of offerings from Baillie Gifford, and of course, the ubiquitous Fundsmith Equity. Rival growth fund Lindsell Train Global Equity looks to have declined in popularity this year, not making the top ten in January and February, after coming in second behind Fundsmith over the same period last year.
That looks to be in large part to be down to the success of Baillie Gifford’s fund range, which account for half of the top ten most popular ISA funds so far this year. There’s still another month to go in ISA season though, and it remains to be seen whether the shift towards cyclical and value stocks we have seen in the market starts to manifest itself in ISA investments too.
Certainly the individual shares picked by ISA investors in 2021 exhibit a cyclical flavour, with the likes of EasyJet, IAG, and BP all being stocks that could do well if there is a strong economic recovery. But ISA investors have also picked Tesla and Unilever, and while both have suffered a fall from grace in recent weeks, they seem to have benefited from investors’ focus on future earnings growth. This split between growth and value stocks reflects a dichotomy of views in the market, on whether or not inflationary pressures are building, and perhaps promising a reversal of the trends we have seen in the market for the last decade.
While the GameStop frenzy has died down, for now at least, trading activity at the back end of January and early February means it’s still one of the most popular ISA share purchases of the year so far. Cryptocurrency miner Argo Blockchain has also proved popular so far this year, as the Bitcoin price has rallied, and naturally thrown a spotlight onto cryptoassets once again.
With just one month to go to fill their AJ Bell Youinvest ISA allowances, and tax rises looking like they’re in the post, we can expect the usual rush to beat the 5th April deadline. Those who find themselves running out of time should remember they don’t have to make an investment decision before the 5th April, if they need a bit more thinking time. They could just make their ISA contribution and hold it as cash, pending an investment decision when they’ve got a bit more breathing space to consider the options.
|Shares 2020||Shares 2021|
|Royal Dutch Shell||Rolls Royce|
|AJ Bell||International Consolidated Airlines|
|Investment trusts 2020||Investment trusts 2021|
|Scottish IT||Scottish Mortgage IT|
|Scottish Mortgage IT||Scottish IT|
|City of London IT||Edinburgh Worldwide IT|
|F&C IT||Monks IT|
|Finsbury G&I IT||Pacific Horizon IT|
|Murray IT||Fidelity China Special Situations IT|
|Smithson IT||JP Morgan China G&I IT|
|Temple Bar IT||Allianz Technology IT|
|Monks IT||Smithson IT|
|Polar Capital Global Technology IT||JP Morgan Emerging Markets IT|
Source: AJ Bell, data collected from ISAs between 01/01-29/02 for each year, excluding AJ Bell funds.
*The article, Most popular AJ Bell Youinvest ISA funds, shares and investment trusts in 2021.
These articles are for information purposes only and are not a personal recommendation or advice. How you're taxed will depend on your circumstances, and tax rules can change. ISA rules apply. Remember that the value of investments can change, and you could lose money as well as make it.