How to invest like an ISA millionaire
We reveal the top funds and trusts ISA millionaires pumped their money into


We can expect to see fewer ISA millionaires this year when the tax year comes to an end in April, following difficult market conditions for investors.
But, it’s not all doom and gloom, as fund platforms begin to reveal how many ISA millionaires we can expect to see this year and what their power portfolios consist of.
According to fund supermarket interactive investor, as of January 2023, it had 852 ISA millionaires on its platform - a drop of around 13% compared to the same period last year when it recorded 983 ISA millionaires.
Subscribe to MoneyWeek
Subscribe to MoneyWeek today and get your first six magazine issues absolutely FREE

Sign up to Money Morning
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
Don't miss the latest investment and personal finances news, market analysis, plus money-saving tips with our free twice-daily newsletter
ISAs are undoubtedly a great tax-efficient way to save and grow wealth, but for those pumping their long-term savings into stocks and shares ISA, the tax benefits that come with the tax-wrapper are significant and the power of compounding is stronger. You may also be interested in our article on ISAs vs savings accounts.
The average age of an interactive investor ISA millionaire is 73, compared to an average age of 56 for the overall ISA cohort.
Most of the ISA millionaires will have started with what was known as personal equity plans (PEPs) which transitioned into ISAs.
We look at what these long term ISA holders invested in to help reach the millionaire milestone.
What do ISA millionaires invest in?
Investment trusts account for the largest share of the ISA millionaires’ portfolio on ii’s platform, accounting for 42.5% of their portfolio, compared to around 8.2% of funds.
Direct equities account for 39.9% of portfolios, followed by 3.7% for exchange-traded products.
When it comes to cash, ISA millionaires are holding close to 50% less in cash, suggesting that ISA millionaires are studiously avoiding the long-term effects of cash drag.
This is how ISA millionaire’s holdings compare to all ISA holdings:
Row 0 - Cell 0 | ISA millionaires | ALL ISAs |
Cash | 5.2% | 9.7% |
Equities | 39.9% | 37.1% |
Funds | 8.2% | 22.3% |
ETPs | 3.7% | 6.3% |
Investment Trusts | 42.5% | 24.2% |
Other | 0.4% | 0.4% |
Dzmitry Lipski, head of funds research, interactive investor, comments: “It’s no surprise to see investment trusts take up such a large proportion of customer portfolios. Over the long-term, some unique features such as gearing (borrowing) to enhance returns have helped them deliver strong long term returns overall.
“Over time that might mean that they might start to account for a larger percentage of a portfolio.”
Lipski added that some investors might consider rebalancing, particularly if a very adventurous investment trust is suddenly taking up a big share of the pie due to outperformance.
“Remember also that that those same investment trust bells and whistles mean they can also underperform in a falling market, and because they are listed on the stock market, trusts can also be impacted by sentiment. But the data shows that investment trusts should not be overlooked.”
Although equities also played a big role, for many of the ISA millionaires, the ultimate overseas exposure was via global investment trusts, with Alliance Trust the most held overall stock amongst ISA millionaires,and Scottish Mortgage in third place.
See our article on after slumping 42% last year, what's next for Scottish Mortgage?
When do ISA millionaires invest?
You know the saying - ‘the early bird catches the worm’ - well in the case of ISA millionaires, it really is about getting in early at the start of the tax year.
ISA millionaires are almost as likely to be tax-year early birds as they are to join the last-minute ISA rush before the tax year ends.
Around 45% of total 12-month subscriptions from ii ISA millionaires were added between 6 and 30 April 2022.
ISA millionaire’s top picks
These are the top 10 investments made by ISA millionaires:
Row 0 - Cell 0 | ISA millionaires | All ISAs |
1 | Alliance Trust | Lloyds Banking Group |
2 | Shell | GlaxoSmithKline |
3 | Scottish Mortgage | BP |
4 | GlaxoSmithKline | Scottish Mortgage |
5 | Haleon | Haleon |
6 | Lloyds Banking Group | Shell |
7 | National Grid | Vodafone |
8 | BP | Aviva |
9 | Legal & General | National Grid |
10 | Aviva | BT Group |
When it comes to equities, ISA millionaires have 91.3% exposure to the UK. They have a little less in the US and 8%.
How to become an ISA millionaire
You already know building wealth is a long term strategy and to become an ISA millionaire, you must be consistent and patient.
For anyone starting out now and investing the full £20,000 annual ISA allowance each year with a 5% annual return (excluding fees), they could hit the million pound mark in 25 years.- £1,002,269.08, to be exact.
If your investments grew by 7%, you could achieve £1,048,722.82 in 22 years.
And if your investments saw annualised returns of 3%, it would take 31 years to reach £1,030,055.17.
These are just projections, as investments can go down as well as up - the key thing is to invest regularly to take advantage of pound cost averaging.
Kalpana is an award-winning journalist with extensive experience in financial journalism. She is also the author of Invest Now: The Simple Guide to Boosting Your Finances (Heligo) and children's money book Get to Know Money (DK Books).
Her work includes writing for a number of media outlets, from national papers, magazines to books.
She has written for national papers and well-known women’s lifestyle and luxury titles. She was finance editor for Cosmopolitan, Good Housekeeping, Red and Prima.
She started her career at the Financial Times group, covering pensions and investments.
As a money expert, Kalpana is a regular guest on TV and radio – appearances include BBC One’s Morning Live, ITV’s Eat Well, Save Well, Sky News and more. She was also the resident money expert for the BBC Money 101 podcast .
Kalpana writes a monthly money column for Ideal Home and a weekly one for Woman magazine, alongside a monthly 'Ask Kalpana' column for Woman magazine.
Kalpana also often speaks at events. She is passionate about helping people be better with their money; her particular passion is to educate more people about getting started with investing the right way and promoting financial education.
-
December 2023 NS&I Premium Bond winners - check now to see what you’ve won
If you hold money in NS&I Premium Bonds, you can check from today (2 December) to see if you have won in the December prize draw. Here’s how to check.
By Vaishali Varu Published
-
OpenAI – corporate drama unleashed
OpenAI, the firm behind ChatGPT, was in uproar as its boss was booted out, briefly snapped up by Microsoft and then brought back again.
By Dr Matthew Partridge Published
-
Halifax: House price slump continues as prices slide for the sixth consecutive month
UK house prices fell again in September as buyers returned, but the slowdown was not as fast as anticipated, latest Halifax data shows. Where are house prices falling the most?
By Kalpana Fitzpatrick Published
-
Rents hit a record high - but is the opportunity for buy-to-let investors still strong?
UK rent prices have hit a record high with the average hitting over £1,200 a month says Rightmove. Are there still opportunities in buy-to-let?
By Marc Shoffman Published
-
Pension savers turn to gold investments
Investors are racing to buy gold to protect their pensions from a stock market correction and high inflation, experts say
By Ruth Emery Published
-
Where to find the best returns from student accommodation
Student accommodation can be a lucrative investment if you know where to look.
By Marc Shoffman Published
-
Best investing apps
We round up the best investing apps. Looking for an easy-to-use app to help you start investing, keep track of your portfolio or make trades on the go?
By Ruth Emery Last updated
-
The top funds to invest in - November 2023
Tips Investors are focused on income strategies and FTSE heavyweights. We look at what investors have been adding to their portfolios in the last month
By Vaishali Varu Last updated
-
The world’s best bargain stocks
Searching for bargain stocks with Alec Cutler of the Orbis Global Balanced Fund, who tells Andrew Van Sickle which sectors are being overlooked.
By Andrew Van Sickle Published
-
Revealed: the cheapest cities to own a home in Britain
New research reveals the cheapest cities to own a home, taking account of mortgage payments, utility bills and council tax
By Ruth Emery Published