As the new tax year kicks off, investors are eyeing the £20,000 ISA allowance with renewed enthusiasm. Amidst the current financial landscape, marked by fluctuating stock markets and rising inflation, experts are advocating for a tilt towards stocks and shares ISAs rather than cash savings accounts. The potential for greater returns is evident, with stocks and shares ISAs showing an average growth of around 11% over the last year, compared to a modest 3.48% for their cash counterparts.
In light of these insights, five financial specialists have shared their top fund selections for the 2026 tax year, offering a blend of diversification, risk management, and growth potential.
Expert Recommendations for 2026
Scottish Mortgage FTSE 100
Annabel Brodie-Smith, the communications director of the Association of Investment Companies (AIC), champions the Scottish Mortgage FTSE 100 investment trust, managed by Baillie Gifford. This fund targets a diverse range of both promising private firms—such as SpaceX and Revolut—and established public companies like Meta and Nvidia. Currently trading at a 5% discount and with low management fees of 0.31%, it appeals to long-term investors willing to embrace higher risk. Over the past year, the trust has surged by 27% and boasts an impressive 68% increase over five years.
iShares Over 15 Years Gilts Index Fund (UK)
Alan Miller, Chief Investment Officer at SCM Direct, highlights the iShares Over 15 Years Gilts Index Fund as a standout choice. This fund tracks UK government bonds with a minimum maturity of 15 years, holding 27 gilts with net assets of £2.95 billion. With a remarkably low annual charge of just 0.1%, Miller emphasises the fund’s potential for stable returns, citing a compounded return of 4.95% over a decade, which translates to a 62% pre-charge return. As gilt yields approach historic highs, this option presents a compelling, tax-efficient investment strategy.
Man Income Fund
Paul Agnell, head of investment research at AJ Bell, recommends the Man Income fund, which focuses on undervalued UK companies across various market capitalisations. The fund managers, Henry Dixon and Jack Barrat, are known for their analytical approach, emphasising cash flow and asset value to identify promising investment opportunities. Following a strong performance in 2025, with a 28% return, the fund has already gained over 10% in the first two months of 2026. The annual charge for this fund is 0.9%, making it a viable option for those seeking value in the UK market.
Murray International
Philippa Maffioli from Blyth-Richmond Investment Managers advocates for Murray International, which aims to balance global diversification with a reliable income stream, currently yielding around 3.5%. The fund’s strategy centres on sustainable cash flows and sensible valuations rather than chasing the highest yields. With a strong track record, it has appreciated by 36% in the past year and 60% over five years. The fund charges a fee of 0.5%, making it an attractive long-term investment.
Pantheon Infrastructure Plc
Jonathan Moyes, head of investment research at Wealth Club, presents Pantheon Infrastructure Plc as a way to diversify away from traditional stock markets while potentially securing equity-like returns. Investing alongside leading infrastructure managers, the fund’s portfolio includes critical assets like large-scale data centres and renewable energy projects. Despite its recent 30% rise, shares are currently trading at a 13% discount to net asset value, signalling potential for growth as this gap narrows. Investors should be mindful of the higher-risk nature of this investment, as it should complement a well-rounded portfolio.
Why it Matters
As the economic climate continues to evolve, understanding and diversifying investment options within ISAs becomes imperative for long-term financial health. With inflation affecting cash savings and stock markets displaying volatility, the recommendations from these financial experts present viable pathways for investors looking to maximise their returns while mitigating risk. The insights shared not only highlight the importance of strategic investment choices but also serve as a reminder of the need for a balanced approach to wealth management in an unpredictable financial landscape.
