Opening an individual savings account (ISA) reveals a world of investment opportunities while avoiding the complications of tax – but for some people, it can be tricky to know where to start with picking your investments.
How much can I invest in an ISA?
Let’s start with the basics. Once you’ve set up a Stocks and shares ISA with AJ Bell, investing in it is a simple process. To get started, you’ll need to make an initial investment of £250, or you can set up a regular investment of as little as £25 per month.
Setting up a monthly investment can be a great way to keep your investment goals on track. If you set up a direct debit with your bank, you can help to remove any extra hassle and save time, so your money invests itself.
Once you’ve paid the money in, you need to think about how to invest it. It can be helpful to have a clear goal – perhaps you’re:
- Saving for your first home
- Or saving for your child’s education
Keeping these goals at the top of your mind can help you stay committed to growing your savings.
What should I be investing in?
ISAs allow you to invest in a large range of options, including shares, funds, investment trusts and bonds. Deciding which of these is right for your needs can take a little shopping around and research.
Some important things to consider are:
- How involved you’d like to be with your investments
- How much risk you’d like to take
- How long you plan to stay invested
Higher risk investments may result in a higher return but also may be more prone to market ups and downs. Think about how comfortable you are watching the value of your investments go up and down, and how long you plan to keep your money in the market. If it’s a long period, you have more time to ride out any turbulence.
Check out our article on investment risk to learn more.
Should I start with funds, stocks, or something else?
One of the first questions you may face is deciding between putting your money in a stock, fund or bond.
Bonds are usually a lower risk choice, but can earn money at a slower pace. Based on your investment goals, you can decide if a bond provides enough growth for your money.
Typically, picking individual stocks can be a bit more time consuming to select and monitor, and higher risk because you’re relying on the performance of one company, instead of a spread of different companies. This will also require monitoring how the company is performing and ultimately when you think your investment has run its course.
Funds have varying levels of risk but these invest in a group of companies, so you aren't putting all your eggs in one basket. It also means that someone else is deciding what companies to invest in for you, so you can focus your time elsewhere.
There are a wide range of fund options, from funds investing in certain industries or parts of the world, and even ones that play into specific themes like artificial intelligence or companies that pay generous dividends. Funds are popular among first-time investors because they typically provide instant diversification. They will invest in a portfolio of different assets such as company shares or bonds.
Essentially, you are spreading your risk with a fund – if something goes wrong with one of the companies or bonds in its portfolio, you have all the other holdings to act as a cushion and hopefully minimise the damage.
One thing to be conscious of is fees. Funds can have a wide range of charges, and it’s important to make sure you get what you pay for. If fees are high, and the returns of the fund aren’t very strong, those fees will eat into your gains. Equally, you may decide that it’s worth paying a higher fee if you think the fund manager will generate higher returns. However, there are many low-fee options available for investors.
If you’d like to keep up to date on what’s happening in the markets or learn more about investing, you can read our investment articles and opt in to receive emails from us with helpful hints and tips.
Important information: These articles are for information purposes only and are not a personal recommendation or advice. Remember that the value of investments can change, and you could lose money as well as make it. ISA and tax rules apply and could change in the future.
An AJ Bell Stocks and shares ISA is an easy, tax-free, efficient way to invest.
We do the heavy lifting when you move your portfolio to us.
Written by:
Hannah Williford
Content Writer
Hannah joined AJ Bell in 2025 as an investment writer. She was previously a journalist at Portfolio Adviser Magazine, reporting on multi-asset, fixed income and equity funds, as well as macroeconomic impacts and regulatory changes within the industry.
Hannah earned a degree in journalism from the University of Texas at Austin before beginning her career in London. Before joining the finance industry, she covered state politics in Texas and worked as a sports reporter.
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