Which ISA fund or trust option might be best for you? There are options for all kinds of investors

BFIA asked the experts for funds and investment trusts you could think about in 2026, regardless of whether you're a novice investor, an ISA investor looking for consistent returns, or someone looking to add a little more risk to your portfolio

As the 2025 - 2026 tax year draws to a close on April 5th, now is the ideal moment to utilize your current 20,000 ISA allowance to the fullest and begin planning for what to do with the next allowance when it resets on April 6th.

With stocks and shares, ISAs give investors a place to grow their money without paying taxes on the potentially large gains. According to Interactive Investor's calculations, individuals who invested their entire ISA allowance annually into the FTSE All-Share Index from the time ISAs were introduced in April 1999, for instance, would have a portfolio worth 665,696 over the 26 years until April 2025 (having contributed 326,560).

Selecting the appropriate investments for your stocks and shares ISA portfolio is crucial; ideally, you should take into account your current investment holdings, attitude toward risk, and stage of the investment learning curve.

In order to accommodate various investor types, BFIA asked investment specialists at fund platforms Fidelity International and Interactive Investor for their top picks for ISA funds and ISA investment trusts.

Trustworthy returns.

Shares and stocks ISA investors may consider global equity income funds if they are looking for a consistent return. Investing in dividend-paying businesses worldwide offers the possibility of both long-term capital growth and an expanding income stream.

Anyone who enjoys the idea of consistent earnings but still desires exposure to international markets will find that global equity income funds are a good fit because they frequently gravitate toward financially stable, well-run companies.

The Fidelity Global Dividend fund, which has been managed by Dan Roberts since its 2012 launch, was recommended by Dzmitry Lipski, head of funds research at Interactive Investor. Roberts has over 20 years of experience investing in dividends.

According to Lipski, "it invests in businesses around the world that offer a healthy dividend yield and the potential for capital growth and aims to generate roughly 25 percent more income than its benchmark."

There are about 46 big, strong companies in the portfolio; Europe makes up about 48% of it, followed by North America (26%), the UK (15%), and China (0%). Lipski stated: "The financial, industrial, and consumer staple sectors lead the purposefully defensive sector allocations.

Jemma Slingo, a pensions and investment specialist at Fidelity International, stated that she prefers Pyrford Global Total Return, which has a third of the portfolio in stocks and two thirds in high-quality bonds.

According to her, "it tries to keep volatility low, while providing a stable stream of inflation-beating returns." According to Slingo, "growth has been fairly muted particularly when inflation is accounted for," even though the funds performance chart initially appears to show few significant declines.

Over the course of ten years, Pyrford has increased an initial investment of £1,000 to £1,440. You may be willing to make this trade-off, though, if you want the option to sleep at night.

Diversification through adventure.

Those looking to add some intriguing diversification to their stocks and shares ISA portfolio might want to consider Murray International, an investment trust, as global stock markets become more concentrated and concerns about the AI theme becoming overheated grow.

Murray International checks the box for "those investment trusts that use their full global remit in having a good chunk of exposure to Asia Pacific and Latin America," according to Kyle Caldwell, editor of funds and investment education at Interactive Investor.

Caldwell noted that the portfolio deviates significantly from the overall market, has a value investment approach, and provides an above-average dividend yield of about 4 percent.

Fidelity Slingo also enjoys Asia and Latin America, but this time in the form of the Lazard Emerging Markets fund. He is also worried about the stock market being controlled by a small number of US technology stocks.

She added that emerging markets were among the top-performing equity assets last year and that the outlook is still looking good. "The fund seeks out companies that are cheaper than the market but that have better fundamental prospects," she said.

According to Slingo, "a rotation out of the US, strong earnings growth, and a weak US dollar could all boost performance this year."

Recent investors.

The Fidelity Global Dividend fund might be a good choice for novice investors who are wary of volatile markets and would prefer something a bit more unique than a global tracker fund.

It offers a mix of income and growth, invests in businesses globally, and strives to maintain volatility below that of the overall market. "Over the last ten years, the fund has produced consistent gains," Slingo stated.

According to Slingo, "new investors will know that buying the fund means buying real businesses that impact them" because it owns well-known companies like Unilever and National Grid.

The managed solution, such as Interactive Investors Managed ISA, where the investments are picked for you, may be a good place to start, according to Lipski at Interactive Investor.

After completing a questionnaire, investors are paired with one of ten portfolios in two categories (sustainable and index investing) and five risk levels. After investing, the portfolio is rebalanced on a regular basis to reflect the risk level you agreed to.

Since it is part of Interactive Investors' current flat-fee subscription-based charging model, the fund fees are minimal and there is no additional management fee.

In different articles, we examine the top investment platforms for novices and the top funds for novices.

A novice investor might also want to consider capital preservation or absolute return funds. They employ a variety of tactics to reduce volatility and aid in safeguarding against significant declines.

Lipski recommended taking a look at the Trojan Fund: "Managed by Sebastian Lyon, Trojan Fund takes a conservative, disciplined approach focused on preserving capital and delivering long-term real returns," he stated.

Lyon makes investments in a wide variety of asset classes. Large, financially stable companies in developed markets, especially the US and the UK, are the focus of the equity portion. A strategic allocation to gold is also included in the fund's defensive holdings, which include premium sovereign and inflation-linked bonds. Additionally, cash is used effectively to safeguard capital and enable quick investment when opportunities present themselves.

Lipski stated, "The fund provides a stable, protective choice for investors looking for long-term real returns with managed risk."

Knowledgeable investors.

For their stocks and shares ISA, more seasoned investors might want to look at smaller businesses. As noted by Fidelity's Slingo, "these can be significantly riskier than large ones, but experienced investors with long time horizons might want some exposure to this part of the market."

The Brown Advisory US Smaller Companies fund was proposed by Slingo. To identify the most promising smaller companies listed in the United States, a large team of researchers is dispatched. Their approach is founded on the idea that a long-term strategy and sound fundamental research can produce appealing outperformance," she stated.

In recent years, the fund's performance has fallen short of the benchmark, making it a riskier choice. Slingo stated that "experienced investors who are worried about the dominance of large US tech stocks in their portfolios may find it appealing."

Lastly, the Marlborough Special Situations fund is another excellent choice for the more experienced investor, according to Dave Baxter, senior fund content specialist at Interactive Investor.

It makes investments in the creative and adaptable smaller businesses in the UK that have the potential to grow rapidly. With significant weightings to technology, consumer discretionary shares, and industries, its sector bets are notably different. Zegona Communications, Boku, and SCA Investments are among the top holdings.

"Marlborough Special Situations has performed poorly in 2025 and in recent years," Baxter stated. The fund's top holding accounts for only 26% of the portfolio, despite having over 150 holdings with small position sizes.

"The fund does, however, have a solid track record over the long run and good exposure to mid-, small-, and micro-cap stocks. In theory, it should perform better when interest rates start to decline.