Morningstar's Guide to ISA Investing

Happy New Tax Year! On April 6 investors were given a fresh allowance of £11,880. This week we bring you ideas guidance on where best to allocate your ISA cash

Emma Wall 7 April, 2014 | 9:40AM
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Investors now have a further allowance of £11,880 to shield in a tax-efficient wrapper from income and capital gains tax.

On April 6 a new fiscal year began, and the 2014/15 tax year ISA allowance is £11,880. This is no ordinary tax year however, as come July 1 your ISA allowance will be bumped up to an unprecedented level and you will be allowed to invest – or save in a cash account – up to £15,000 tax free.

These New ISAs, or ‘NISAs’, were announced by Chancellor George Osborne in last month’s Budget report and those extra thousands of tax-free pounds means it’s even more important savers take full advantage of their allowances. Over time, those tax-efficient gains and income will multiply – leaving you sitting on a pretty pot.

You may have ISA inertia – weary from the past two months of ISA-related news and views. But now is the real “ISA season”. Getting your investments in early, at the start of the tax year can according to Fidelity, can result in an extra £30,000 in growth over just 14 years. The impact of compounding – where the returns you make generate returns of their own – increases with the amount of time investments are held. So read on for our guide to ISA investing, and reap the early bird benefits over the long term.

Monday: Education

How does the new ISA work? And what are my allowances now?

Introduction to ISAs
Individual savings accounts allow you to shield cash from the tax man

What is a Junior ISA?
We give you some ideas on how and where to invest your child's allowance

ISA Limit Raised to £15,000
Chancellor George Osborne's Budget contained great news for savers

Why Income Matters
Choosing income paying assets and accumulating yield equates to great growth

Early ISA Investment Equates to £30,000
Conquer your lethargy and act now as early bird ISA savers earn more

Tuesday: Stocks and Shares

Which companies should I be investing in now for long term gains and income?

How to be a Successful Value Investor
How can you avoid value traps and spot unvalued businesses?

3 Undervalued UK Stocks
Investors should look to the FTSE 250 to find stocks trading at less than fair value

Budget to Boost Equities
There could be more upside to come if you can stomach volatility

3 Top Rated UK Equity Income Trusts
Looking for some investment ideas? Check out these domestic exposure trusts

Top 20 Dividend Paying Stocks
A well diversified portfolio of stocks of all sizes can provide income for life

Taxes and ETFs: A Guide for British Investors (Archive)
IFA Lee Robertson outlines what investors need to be aware of when buying ETFs to avoid getting stung by the tax man

Wednesday: Bonds

When will interest rates rise? Which bond funds offer diversification?

Fund Analyst's ISA Picks
Look at your portfolio as a whole and choose investments based on assets

Bond Market Outlook
Today's fixed income market requires investors to be selective

5 Themes for Bond Investing
What are the current challenges and opportunities in fixed income

5 Top Rated Bond Funds
Get global diversification with these bond fund picks

Bond Yields Will Rise
Fund managers are entering unknown waters

Should You Invest in Retail Bonds?
Are these individual issues suitable for your portfolio?

Thursday: Think Global

Where in the world should I be investing?

Which Countries Pay the Best Dividends?
Income-seeking investors should be thinking globally, and protecting their returns from income tax by investing within a wrapper such as an ISA

Morningstar Analyst's ISA Investments
ASK THE EXPERT: Morningstar's Jackie Beard tells us which funds she's putting in her ISA this year to achieve her capital growth goals without paying tax.

Where in the World Should you Invest?
Which equity market offers ISA investors the best chance of healthy returns? We examine the prospects for developed and emerging markets alike

China's Crisis is Good for Investors
China is still the most dominant of emerging markets; its growth is paramount to positive returns in the region and investors should be pleased with its progress

Friday: Alternatives

Cash, commodities and property – what role do they play?

Top Cash ISAs for the New Tax Year
If you're saving for a short-term goal such as a deposit for a home, one of these best-rate cash ISAs could be just the ticket 

Alternative Options for Your ISA
A well balanced ISA portfolio of equities and bonds can be supplemented with alternative assets that add diversification and hedge against market fluctuations.

Alternative ISAs: Infrastructure
A big attraction of infrastructure funds is the fixed income nature of their returns, and the returns for many of these investments can be partially hedged for inflation 

UK Commercial Property a Stand-out Performer
Investors looking for alternative exposure to mitigate lacklustre stocks and bonds could do worse than considering a UK commercia property fund

Commodities: A Lacklustre Outlook?
Commodity indices have been underperforming for over two years, so are we nearing the trough?

The information contained within is for educational and informational purposes ONLY. It is not intended nor should it be considered an invitation or inducement to buy or sell a security or securities noted within nor should it be viewed as a communication intended to persuade or incite you to buy or sell security or securities noted within. Any commentary provided is the opinion of the author and should not be considered a personalised recommendation. The information contained within should not be a person's sole basis for making an investment decision. Please contact your financial professional before making an investment decision.

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About Author

Emma Wall  is former Senior International Editor for Morningstar