The investment trusts that could have made you £2million in your ISA

February 20, 2024
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Savers could have become “ISA millionaires” if they had invested in one of 32 investment trusts each year since 1999, data shows.

Although it is usually encouraged for one to diversify their portfolio, if a saver put their entire annual allowance into each of these trusts over 25 years, they would have been able to join the ISA millionaires group.

According to the Association of Investment Companies, software and technology services investor HgCapital Trust would have provided the highest returns.

Those who invested in these shares would have had a total of £2.3million between 1999 and 2023, based on a total investment of £306,560 over the period.

The number of ISA millionaires are rising by hundreds year on year despite sustained high living costs.

ISA millionaires are increasing year on year following a “bumper year” for investments, new data shows.

Isas, or individual savings accounts, protect one’s savings or investments from tax on interest, profits, and dividends. They are a tax-efficient way to save money.

According to the Association of Investment Companies (AIC), HgCapital Trust was the top performer, generating a massive tax-free pot of £2,254,391.

Jim Strang, HgCapital Trust chair, said: “It is very heartening that the company has been able to deliver such compelling gains for shareholders over the last 25 years.

“This is a solid endorsement of the private equity model and the skill and expertise that the manager, Hg, has employed so successfully over this time.”

Allianz Technology Trust also produced an ISA worth more than £2million – £2,095,955 to be precise.

For the same investor putting in their entire Isa allowance since 1999, it would have delivered £2.1million in returns. Fellow technology investor Polar Capital Technology would have returned £1.9million over the period.

Allianz Technology Trust portfolio manager Mike Seidenberg said: “As we often remind investors, we are arguably living in the golden era of technology where companies across most industries become relevant or irrelevant depending on their adoption and use of technology.”

Scottish Mortgage, a global trust with a growth-focused mandate, took fourth place, producing an ISA worth £1,639,261. Scottish Oriental Smaller Companies came fifth, returning £1,538,589.

Two of the top five performers – HgCapital Trust and Scottish Mortgage – invest at least part of their portfolio in unquoted companies.

Among the 32 ISA millionaire investment trusts, 12 focus on smaller companies.

Four of them are from the UK Smaller Companies sector with BlackRock Throgmorton Trust performing best of these, returning £1,214,138 to take 10th place in the table.



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