Attention! Stocks and Shares ISA investors are buying these UK shares right now
The ability to invest up to £20,000 in a Stocks and Shares ISA and not pay tax on any gains surely provides one of the best encouragements UK investors have. And there’s less than two months to go before time runs out to use up as much of our 2025-26 limit as we can.
In the early weeks of 2026, private investors are still piling their spare cash into UK shares. And more than any recent month I can remember, it looks like January was characterised by diversification. So what are the most popular stocks?
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According to interactive investor, Aviva (LSE: AV.) was the individual stock most bought by ISA investors in January, with Fresnillo second. The immediate attraction of Fresnillo seems apparent — it’s the world’s largest primary producer of silver. And few will have failed to notice how that metal has soared along with gold — though it’s fallen back from its peak of over $100 per ounce.
Fresnillo shares looks like they’ve been a bit of a short-term thing to me. Those who bought in January hit the highest-price month for silver ever. And that might turn out to be unfortunate timing.
Long-term favourite
I’m more impressed to see the persistent popularity of Aviva. Aviva is dull and boring, and very much a long-term investment in my view. It’s come through its painful refocus in good shape. And I’d rate it as likely to be less volatile than any stocks related to precious metals at the moment.
Oh, and Aviva has a forecast dividend yield of 5.7%. I like Aviva — it’s one of my own holdings.
My main fear is that a forward price-to-earnings (P/E) ratio of 14 might be a bit high. That doesn’t seem to offer a lot of safety margin in what can be a cyclical sector. And it could keep the share price back. But for the long term, it’s one of my top Stocks and Shares ISA considerations.
Investment trusts
Scottish Mortgage Investment Trust was the most popular investment trust in January. And it regularly makes the top few places throughout the year. It shows UK investors want a taste of the Magnificent 7 tech stock action, but with a bit of diversification thrown in.
I can’t stress the importance of diversification enough. And it’s why I think newcomers to ISA investing should seriously consider starting with investment trusts. City of London Investment Trust is a popular ISA pick, for example. It holds a wide range of top UK stocks — including HSBC Holdings, Shell, Unilever… and a whole lot more.
Tech wobble
Looking outside the UK, the US tech stock volatility of late has pushed Nvidia down the popular ISA rankings. But Microsoft made a new entry in interactive investor’s January list.
It’s easy to run out of ideas with the ISA deadline approaching. But looking around at what others are buying can help kickstart our thoughts. And every stock mentioned here has to be worth considering, in the right circumstances. Just as long as we diversify — or did I mention that already?
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HSBC Holdings is an advertising partner of Motley Fool Money. Alan Oscroft has positions in Aviva Plc, City Of London Investment Trust Plc, and Scottish Mortgage Investment Trust Plc. The Motley Fool UK has recommended Fresnillo Plc, HSBC Holdings, Microsoft, Nvidia, and Unilever. 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.
