Stock markets are more turbulent than ever. Those who are not used to seeing their wealth rise and fall day by day may well be wary of trying them for the first time.
But when investing for the long term, investors who choose stocks and shares ISAs will almost certainly do better than those who play it safe by holding cash savings, and will never pay tax on their gains.
The average stocks and shares ISA is worth more than £65,000, significantly more than the typical cash ISA, which is less than £13,500.
“With UK inflation elevated at around 3 per cent over the last year, it's not a good time to run out of cash, especially given that over the last 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,” explained Dan Moczulski, managing director of eToro UK.
Now that the new tax year relief is in place (worth £20,000 per person), we asked five experts to pick a fund they were willing to purchase themselves.
While they are not recommendations for everyone, they offer food for thought, as well as better diversification and lower risk than buying shares of individual companies.
Scottish Mortgage FTSE 100
Annabel Brodie-Smith, communications director at the Association of Investment Companies (AIC)
Brodie-Smith is betting on the Scottish Mortgage FTSE 100 investment fund managed by Baillie Gifford.
This company invests around the world in interesting private companies such as SpaceX and Revolut, as well as publicly traded companies such as Meta, Nvidia and ASML.
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Get a free fractional share worth up to £100.
Capital at risk.
Terms and conditions apply.
Go to website
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Their goal is to invest in the companies that will shape the future: a combination of technology, healthcare, consumer services and more. The trust is currently trading at a discount of 5 per cent and has low charges of 0.31 per cent. This is an investment trust for long-term investors with a high appetite for risk.
This fund is up 27 percent in the last year and 68 percent in five years.
iShares Over 15 Years Gilts Index Fund (UK)
Alan Miller, CIO of SCM Direct
This fund tracks the FTSE Actuaries UK Conventional Gilts Over 15 Years Index and is therefore a fund that invests solely in sterling-denominated UK government bonds, with a minimum remaining maturity of 15 years. He has 27 gilts, net assets of £2.95bn and a Morningstar Gold Medal.
There are no performance fees and a charge of just 0.1 percent per year.
Miller says: “One of the most attractive opportunities in the market is hiding in plain sight: UK government bonds.
“Here's the figure that stops people in their tracks: 4.95 per cent compounded over 10 years is a 62 per cent return before charges, fully backed by the UK government and sheltered from tax within an ISA.”
Bond yields are near multi-decade highs. Locking in a yield to maturity of almost 5 per cent within an ISA wrapper, where all income and gains are tax-free, is exceptional by historical standards, and with an ongoing charge of just 0.1 per cent a year, you lose virtually nothing in fees.
He adds: “Boring has rarely looked so good. It's the kind of deal most active fund managers can only dream of delivering.”
This fund has remained basically stable over the past year and is up 9 percent in five years. This is because interest rates have been very low; Since they are higher now, they should do better from now on.
Male Income
Paul Agnell, Head of Investment Research, AJ Bell
Of the Man Income fund, Agnell says: “The fund's pragmatic and analytical managers, Henry Dixon and Jack Barrat, invest in undervalued British companies across the market capitalization spectrum, which are paying a return at least in line with the market. To avoid value traps, the managers also analyze a company's cash flow and assets.”
The team therefore looks for undervalued and under-appreciated companies, for which the UK market continues to present opportunities.
Their investment process focuses on identifying two types of stocks: those trading below their replacement cost (what it would cost today to replace a company's assets and operations) that also generate cash, and those where the market appears to be undervaluing earnings streams.
The fund is off to a great start in 2026, up more than 10 per cent in the first two months alone and up 28 per cent on 2025. Banks were a key contributor in 2025, led by Lloyds, but with strong contributions also coming from Barclays and Standard Chartered.
The fee on the Man Income fund is 0.9 percent.
Murray International
Philippa Maffioli, Investment Managers at Blyth-Richmond
Murray International aims to combine global diversification with a strong revenue stream. The yield is around 3.5 percent.
Maffioli says: “I like Murray International's focus on reliable cash flows and sensible valuations, rather than chasing the highest yield. It is also not tied to the UK market, so it is spreading risk across regions and currencies.”
Day-to-day decisions now fall to Martin Connaghan and Samantha Fitzpatrick, but the focus remains consistent: sustainable income with long-term growth potential. If you reinvest the dividends, it can be a solid compounding option over time.
It charges commissions of 0.5 percent. It has increased 36 percent in the last year and 60 percent in five years.
Pantheon Infrastructure Plc
Jonathan Moyes, Head of Investment Research, Wealth Club
Pantheon Infrastructure Plc aims to provide investors with some diversification outside of global stock markets while also giving them the potential to earn attractive stock-like returns over the long term.
The FTSE 250 trust co-invests alongside some of the world's leading infrastructure managers. Its portfolio includes large-scale data centers, gas distribution networks, US renewable energy and storage developers, as well as one of Europe's leading temperature-controlled transport and logistics companies.
Moyes says: “These assets are prized for their mission-critical nature and long-term contracted revenue streams. However, Pantheon Infrastructure shares change hands at an attractive 13 per cent discount to net asset value.”
That means the fund's shares are valued higher than the actual fund, which means easy profits. Yeah that discount is reduced. Trust valuations do not always do this, while others may trade at a premium; in other words, more than the sum of its parts.
Investors should note that this is a high-risk investment and should be part of a diversified portfolio. The trust has total ongoing charges of 1.29 per cent. The fund has grown 30 percent in the last year, but is too new for a five-year view.
Depending on the investment platform you use, and like any other fund, there may also be share trading costs, so try to minimize these where you can so they don't affect your long-term returns.
When investing, your capital is at risk and you may get back less than you invested. Past performance does not guarantee future results.
