Analysis of ISA millionaires on the AJ Bell Youinvest platform shows:
• More than a quarter of the ISA millionaires are women
• The millionaire with the largest number of investments has 173…
• …while the average number of investments is 38
• Almost half of the millionaires own Lloyds
• The average ISA millionaire is 69 years old…
• …but the youngest is a 45-year-old woman
• The best investment gain from an ISA millionaire is a 8,700% increase on Amazon shares
• London has the highest concentration of ISA millionaires
Laura Suter, personal finance analyst at investment platform AJ Bell, comments:
“Most people would aspire to amass £1m or more in their ISAs and reach the coveted ‘ISA millionaire’ status, but the figures show that you need to save over the long term and make some wise investment choices to be able to join the club.
“Broadly, the ISA millionaires shun funds in favour of shares, investment trusts and ETFs – just 3% of the holdings are in funds. For stocks, almost 50% of the ISA millionaires own UK banking giant Lloyds – a perennial favourite among investors. They are most likely to have a home bias and stick to UK stocks, with Aviva, National Grid, Tesco and SSE all coming in the most popular stocks among the group.
“The biggest gain among the group is an early investment in technology giant Amazon, with one savvy investor buying 60 shares when they were £19 a share – they have since soared to more than $2,000 (around £1,700) a share. Other tech giants to propel the ISA millionaires’ returns are Google parent company Alphabet, bought for around £100 a share and returning more than 1,000%, and Tesla, where the shares have risen by around 420% during the time one ISA millionaire owned them.
“But you don’t need to just look stateside for returns, as a large number of smaller UK stocks have delivered the top performance. This includes plastic producer Victrex, which netted one ISA millionaire a 1,940% return, and digital marketing supplier 4Imprint, which rose by almost 1,800% during the time one millionaire owned it. Other more niche examples include AIM-listed iodine producer Iofina, which rose more than 1,400%, and FTSE 250 listed polymer producer Synthomer, which jumped 585%.
“We’ve seen the number of ISA millionaires grow by 50% since last year, as stock markets continued their rise. It’s also good to see that it’s not just the preserve of men, with more than a quarter of the ISA millionaires being women, including the youngest ISA millionaire – at 45.
“The beauty of saving money in your ISA is that there’s no income tax or capital gains to pay on your growth, which would otherwise eat into your returns when you come to cash it in. This means that if you reach the lucrative ISA millionaire status, then without even touching your capital you could feasibly take a £40,000 income each year, entirely tax free, assuming a 4% yield on your pot – more than the average UK salary before tax.”
Most popular shares held by ISA millionaires:
|
Stock |
Percentage of ISA millionaires holding it |
|
Lloyds |
47% |
|
Aviva |
43% |
|
HSBC |
43% |
|
GlaxoSmithKline |
40% |
|
Royal Dutch Shell |
40% |
|
Vodafone |
33% |
|
National Grid |
30% |
|
Tesco |
27% |
|
Astrazeneca |
27% |
|
Barclays |
27% |
Most popular investment trusts held by ISA millionaires:
|
Investment trust |
Percentage of ISA millionaires holding it |
|
Worldwide Healthcare |
20% |
|
HICL Infrastructure |
17% |
|
Murray International |
17% |
|
Alliance Trust |
13% |
|
BlackRock World Mining |
13% |
|
Henderson Far East Income |
13% |
|
Allianz Technology Trust |
10% |
|
City Merchants |
10% |
|
Edinburgh Worldwide |
10% |
|
Finsbury Growth & Income |
10% |
|
Henderson International Income Trust |
10% |
|
Law Debenture |
10% |
|
Scottish Mortgage |
10% |
