High or low risk? Here's where DIY investors are putting their money

Individual savings accounts (ISAs) continue to be a popular savings method in the UK, with an allowance of up to £20,000 in the 2024-2025 tax year, and tax-free interest earned on the funds. This applies to both capital gains or income from investments in ISAs, as well as interest on cash. 

There are four types of ISAs, namely cash, stocks and shares, innovative finance and lifetime ISAs, which all serve different purposes. 

So which are the most popular ISA investments? 

In January 2025, AJ Bell DIY customers took on a higher amount of risk, while spreading out their investments across funds, investment trusts and shares on the AJ Bell platform. 

Among funds, tracker funds and exchange-traded funds (ETFs) were the most popular.

Based on net flows, Fidelity Index World, Vanguard S&P 500 ETF, HSBC FTSE All World Index, Vanguard LifeStrategy 100% Equity and L&G Global Technology Trust were the most popular funds.

Dan Coatsworth, investment analyst at AJ Bell, said in an email note: "Exposure to global markets and the tech sector topped the list of places investors deployed money, suggesting they started the new year hoping for broad-based gains on equity markets or a third year in a row for tech sector strength.

"Investors use ISAs for lots of different reasons, some saving for a specific goal and others simply squirreling money away for another day. The one thing that unites all these different people is the ability to protect your capital gains and dividends from the taxman."

Coatsworth also pointed out: "The top five most popular funds were all passive vehicles – index funds or ETFs tracking an index – which reinforces the view that more people are turning their back on active managers. It's very hard for a fund manager to