The latest figures from HMRC have revealed that almost 5,000 ISA-holders have reached millionaire status, many of which are leveraging a Stocks and Shares ISA to build wealth. A freedom of information request by money-saving app Plum showed that the ISA millionaire count jumped from 4,070 in 2023 to 4,850 in 2024. And looking at the top 25 ISA accounts revealed an average value of £8.9m.
HMRC has cautioned that due to some potential record-keeping errors by ISA managers, these figures might be slightly off. Nevertheless, the trend’s clear – the number of ISA millionaires is rising rapidly.
So which stocks have they been buying? And how can other ISA investors try to join the exclusive club?
Investigating ISA millionaire investments
Thanks to data from AJ Bell, we can gain some insights into who these ISA millionaires are and what shares they’ve bought. What immediately stands out is the age of these investors – the average is 72. That suggests most have been building their wealth over time rather than achieving skyrocketing returns in their youth.
We can also see that most of these investors are relying largely on exchange-traded funds and investment trusts. In fact, two of the most popular in the latter category are Scottish Mortgage Investment Trust and City of London Investment Group.
As for individual stocks, the top five most popular holdings among ISA millionaires are:
Shell
Lloyds Banking Group (LSE:LLOY)
GSK
BP
Aviva
Given how wealthy these individuals are, should investors copy their strategy and start buying shares in these stocks, trusts, and funds?
Don’t be a copycat
Studying the success of other investors can be a rewarding endeavour. However, mimicking the Stocks and Shares ISA investments of millionaires today likely isn’t a good idea. As I mentioned earlier, most of these individuals are cracking on in age, with over half sitting in their 70s.
At this stage in life, investing’s typically less about growing wealth and rather preserving it. And a quick glance at these companies supports that conclusion.
Take Lloyds as a prime example. The bank has over £90bn of assets on its balance sheet and plays a critical role in supporting the British economy. Even now that interest rates are higher, the bank isn’t likely to expand like hotcakes.
Instead, Lloyds seems well-positioned to continue generating a steady stream of cash flow to support a dividend and repurchase shares. After all, the demand for mortgages isn’t going anywhere. Neither is the need for corporate lending or personal loans.
That sounds like a great investment to consider for someone in retirement but less so for those with years of wealth expansion ahead of them. That’s why, when I’m looking to join the ranks of ISA millionaires, I’m paying more attention to exciting growth opportunities rather than copying the portfolios of investors whose strategies and priorities have now changed.
The post There are now 4,850 ISA millionaires! Here are the stocks and shares they’ve been buying appeared first on The Motley Fool UK.
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Zaven Boyrazian has no position in any of the shares mentioned. The Motley Fool UK has recommended GSK and Lloyds Banking Group Plc. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
