- Be it growth, income or capital preservation, we look at some rules of thumb for Isa asset allocation
- 2022’s sell-off brings some interesting opportunities
With the tax environment growing increasingly hostile for investors, shovelling as much money as possible into individual savings accounts (Isas) and pensions seems to be a straightforward choice. Unfortunately, the no-brainers end there: whateverthe goal, choosing the best mix of investments has always been the most challenging task. It’s one that has been amplified by recent uncertainties: high inflation and rising rates continue to worry away at markets, while a global recession remains a possibility. What’s more, many of the funds and shares that have graced the top of the performance tables for many years suffered a horrendous 2022 – prompting valid questions about their prospects and on how to assemble the best combination of holdings.
Tricky as it is to build the right Isa portfolio, certain rules of thumb can prove useful. Knowing your goal, and the best approach to asset allocation, can at least set your Isa on the right path.