Last minute investing suggestions on your Isa: Should you simply ‘purchase British’ if you’re nonetheless dithering

 Investors can be forgiven for hesitating over where to invest this Isa season due to exceptional levels of market volatility following the US-Israel invasion of Iran.

A major supply shock is already starting to shake the global economy, and could worsen dramatically depending on how long Iran blockades the Strait of Hormuz.

There is still time to fill up your Isa, but you shouldn’t delay any longer given the holidays have begun and the 5 April deadline falls on Easter Sunday.

If you are genuinely undecided, don’t forget you can invest in a cash fund and postpone choosing how to allocate this year’s allowance of up to £20,000.

Investing experts always advise spreading your risk, especially in times of trouble, so even if you are usually an active investor a simple multi-asset fund or a cheap global tracker are valid options.

But if you are still casting around for ideas, we asked investing experts to round up some last minute fund and trust tips, particularly any opportunities they like in the UK.

Darius McDermott, managing director at FundCalibre, says: ‘It’s easy to feel nervous about investing amid geopolitical tension and market volatility, but holding back because of uncertainty can be a costly mistake – especially when it comes to your Isa.

‘The allowance is a valuable, tax-efficient wrapper that resets each year, and once it’s gone, it’s gone. Timing the market is a losing game; what matters is time in the market.’

McDermott adds that a well-diversified portfolio – spanning equities, bonds and real assets – has consistently rewarded patient investors over the long term.

He also notes that opting to reinvest income from your investments helps turn steady gains into meaningful long-term growth.

Should you ‘buy British’ for your Isa this year

UK markets are caught up in the global sell-off following the conflict in Iran, but investors looking to build wealth long-term can afford to ignore volatility surrounding even such serious events.

Since the war began on 28 February, the FTSE 100 has dropped 4.8 per cent to 10,380, from the all-time closing high of 10,910 it hit just beforehand.

On Wall Street, the S&P 500 is down 5 per cent to 6,530 at the time of writing.

Investing experts point to promising areas worth considering, such as the UK small cap sector.

‘After years of being overlooked, the UK market still trades at a significant discount to global peers,’ says McDermott.

‘Crucially, its sector composition is well suited to today’s environment, with so-called “dinosaur” sectors such as banks, energy and defence enjoying a strong resurgence. 

‘This has supported a solid run in the FTSE 100 and is beginning to draw renewed interest from global investors.’

But McDermott says the most compelling opportunities may now lie further down the market cap spectrum.

‘UK smaller companies are going through one of their longest periods of underperformance in recent years, but history suggests that over the long term they tend to outperform their larger counterparts. 

‘That leaves this part of the market looking particularly attractive today.’

Rob Morgan, chief investment analyst at Charles Stanley, says: ‘Often the most attractive investment opportunities are found where few people are looking, and UK smaller companies fit that description today.’

He suggests their lack of popularity is understandable given the economic headwinds facing the UK, but there are compelling reasons to reconsider if you are thinking long term.

‘The starting point is valuation. When an asset class becomes sufficiently cheap, capital eventually takes notice. That process was already beginning earlier this year.

‘Since the start of 2025, the UK has been one of the stronger performing equity markets globally, with the more domestically focused FTSE 250 also delivering a solid 12–18 months. There have even been early signs of renewed interest in UK listed companies from European and US investors.’

But Morgan says this recovery has largely bypassed UK smaller companies, which remain ‘unloved and under owned’ despite offering diverse, innovative businesses that are rich in talent and intellectual property.

Jason Hollands, managing director of Bestinvest, says: ‘There are plenty of reasons to be gloomy about the UK economy at the moment. It is especially vulnerable to high energy prices, the tax burden is stifling growth and the jobs market, and the public finances are a mess.

‘However, the UK stock market should not be confused with the UK domestic economy, with nearly three quarters of FTSE 100 earnings made overseas.’

Hollands notes that UK shares are also relatively inexpensive and offer attractive dividend yields.

Meanwhile. the market has relatively higher exposure than others to oil and gas, mining and defence companies that are benefiting from current global events.

Last-minute fund ideas for your Isa

Darius McDermott of FundCalibre tips:

Schroder Recovery (Ongoing charge: 0.92 per cent)

This is a long-standing, value-focused UK fund run with a clear and disciplined process, says McDermott.

‘The team looks for deeply unloved companies where sentiment is overly negative but fundamentals are stabilising, giving scope for meaningful recovery and rerating over time.’

Unicorn UK Smaller Companies (Ongoing charge: 0.86 per cent)

The fund has a high-conviction strategy focused on quality smaller UK businesses with strong balance sheets and long-term growth potential, says McDermott.

‘Its concentrated approach means it can back its best ideas in this overlooked corner of the market.’

SVS RM Defensive Capital (Ongoing charge: 0.67 per cent)

McDermott says this is an absolute return fund designed to protect capital in tougher markets.

‘The managers actively adjust exposure across asset classes and use a range of tools to reduce downside risk while still aiming for steady, positive returns.’

M&G Global Macro Bond (Ongoing charge: 0.65 per cent)

This fund invests across global government and corporate debt and is highly flexible, with the managers taking active views on interest rates, currencies and inflation, according to McDermott.

He reckons that makes it well placed to navigate an uncertain backdrop.

Lazard Global Equity Franchise (Ongoing charge: 0.82 per cent)

McDermott describes this as a global fund with a strategy of investing in dominant companies with predictable earnings and strong competitive advantages.

‘With a portfolio that looks very different from the benchmark, it offers a differentiated route to global equities which has helped it to deliver solid long-term results. A compelling option for investors seeking a core global strategy.’

Jason Hollands of Bestinvest tips:

Temple Bar Investment Trust (Ongoing charge: 0.61 per cent)

Managed by Nick Purves and Ian Lance of boutique fund manager Redwheel, this trust invests predominantly – though not exclusively – in UK-listed companies, explains Hollands.

He says the managers look for strong balance sheets and sustainable earnings in companies which the managers believe are trading significantly below their intrinsic value.

‘This combination of valuation discipline, balance sheet strength and a focus on income gives the trust a relatively defensive profile, while it has also delivered significant outperformance versus the broader UK equity market.’

Artemis UK Select (Ongoing charge: 0.53 per cent)

This is a high conviction ‘best ideas’ fund of 40–60 stocks managed by Ed Legget and Ambrose Faulkes, says Hollands.

‘It has no formal constraints on investing in companies of different sizes, but it tends to be more skewed towards large and mid-cap companies, where the managers believe there are mispriced growth opportunities or businesses undergoing positive change that the market has yet to fully recognise.’

He adds that the fund has flexibility to take selective ‘short’ positions, which allows it to express negative views on overvalued shares – it currently has four short positions.

Rob Morgan of Charles Stanley tips:

BlackRock Smaller Companies (Ongoing charge: 0.80 per cent)

For patient investors, this trust and the fund below will give you selective exposure to UK smaller companies, says Morgan.

WS Gresham House UK Smaller Companies (Ongoing charge: 0.82 per cent)