A stocks and shares ISA is a tax-free savings account that allows you to invest in a wide range of assets, including individual stocks and shares, investment funds, and exchange-traded funds (ETFs).
Each tax year, you are allowed to invest up to a certain amount in your ISA, which is currently set at £20,000 for the 2022/23 tax year. This means that you can invest up to this amount without paying any tax on the income or capital gains generated by your investments.
Investment funds and ETFs are a popular option for ISA investors because they offer diversification and professional management. They can also be a more cost-effective way to invest, as you can access a diversified portfolio of assets for a relatively low cost.
DirectorsTalk highlights a number of well-known LSE-listed investment trusts and funds that can be bought and held in a standard stocks and shares ISA – JPMorgan Japan Small Cap Growth & Income plc, Real Estate Credit Investments, Fidelity European Trust plc, BlackRock Sustainable American Income Trust plc, Volta Finance and The Diverse Income Trust plc.
With the 2022/23 ISA deadline just around the corner, now is an excellent time to review your ISA portfolio and consider whether you are making the most of your tax-free savings allowance for growth and income.
JPMorgan Japan Small Cap Growth & Income (LON:JSGI) is a Japan income investing opportunity giving investors access to a diverse and fast growing sector managed by local managers. The Investment Trust offers a regular quarterly income without compromising on Japanese growth opportunities, by paying a higher dividend funded part by capital reserves as well as revenue returns.
Fidelity European Trust (LON:FEV) is a European investment trust. It aims to be the cornerstone long-term investment of choice for those seeking European exposure across market cycles.
Real Estate Credit Investments (LON:RECI) is a regular dividend-paying, closed-ended investment company which originates and invests in real estate debt secured by commercial or residential properties in Western Europe, focusing primarily on the United Kingdom, France and Germany.
BlackRock Sustainable American Income Trust (LON:BRSA) aims to provide an attractive level of income return together with capital appreciation over the long term, in a manner consistent with the principles of sustainable investing adopted by the Company.
The Diverse Income Trust (LON:DIVI) invests primarily in quoted or traded UK companies with a wide range of market capitalisations, but a long-term bias toward small and medium sized companies.
Volta Finance (LON:VTA, LON:VTAS) is a closed-ended limited liability company that seeks to preserve capital across the credit cycle and to provide a stable stream of income to its Shareholders through dividends that it expects to distribute on a quarterly basis.
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