Can I buy a multiple of stocks or can I only invest in a single share/company in each financial year?
18 April 2023
Question by Lina
I am still confused about investing in Stocks & Share ISA. For example, if I have £20,000 to invest, can I buy a multiple of stocks, as an example- £5,000 in Tesco, £5,000 in M&S, £10,000 in another shares or can I only invest in a single share/company in each financial year?
Answered by Holly Mackay
The £20,000 is total of everything you might put into your ISA every year. You can - and really ideally should - diversify, so not just buy one share. So you could (for illustration only - wouldn't suggest it!) buy 2,000 shares at £10 each.
If you're still learning about investing, it might help to avoid buying individual shares and look to 'funds' instead. Another very easy starter way to buy your first stocks and shares investment is to opt for a 'robo adviser' or look at a 'multi-asset fund' - which is a bit like a ready-meal. Someone's made it for you and it has loads of ingredients, but you don't have to choose and blend them all.
Once you've got your head around how this all works, read some reports and done some reading, then you might want to progress to adding a few individual shares to your ISA. But you can definitely have more than one investment - the limit is the total amount you can have in your ISA account for that tax year.