Five experts pick their best funds for your ISA in the new 2026 tax year

Gilt yields are close to multi-decade highs. Locking in a yield to maturity of nearly 5 per cent inside an ISA wrapper, where all income and gains are tax-free, is exceptional by historical standards, and at an ongoing charge of just 0.1 per cent per annum, virtually nothing is lost to fees.

He adds: “Boring has rarely looked this good. It’s the kind of deal most active fund managers can only dream of offering.”

This fund is basically flat over the last year and up 9 per cent over five years. That’s because interest rates have been very low – as they are now higher it should fare better from here.

Of the Man Income fund, Agnell says: “The fund’s pragmatic and analytical managers Henry Dixon and Jack Barrat invest in undervalued UK companies across the market cap spectrum which are paying a yield at least in line with the market. In order to avoid value traps the managers also look at a firm’s cash flow and assets.”

So, the team seek out undervalued and unloved companies, of which the UK market continues to present opportunities.

Their investment process centres on identifying two types of stocks: those trading below their replacement cost (what it would cost today to replace a company’s assets and operations) that are also cash generative, and those where the market appears to be undervaluing profit streams.

The fund has made an excellent start to 2026, up over 10 per cent in the first two months alone and was up 28 percent over 2025. Banks were a key contributor over 2025, led by Lloyds, but with strong contributions also coming from Barclays and Standard Chartered.

The charge on the Man Income fund is 0.90 per cent.

Murray International aims to blend global diversification with a solid income stream. The yield is around 3.5 per cent.

Maffioli says: “I like Murray International’s focus on dependable cashflows and sensible valuations, rather than chasing the highest yield. It also isn’t tied to the UK market, so you’re spreading risk across regions and currencies.”

Day-to-day decisions now sit with Martin Connaghan and Samantha Fitzpatrick, but the approach remains consistent: sustainable income with long-term growth potential. If you reinvest the dividends, it can be a strong compounding option over time.

It charges fees of 0.5 per cent. It is up 36 per cent in the last year and up 60 per cent over five years.

Pantheon Infrastructure Plc aims to provide investors with some diversification away from global stock markets whilst providing the potential for attractive equity-like returns over the longer term.

The FTSE 250 trust co-invests alongside some of the world’s leading infrastructure managers. Its portfolio includes large scale data centres, gas distribution networks, US renewable energy and storage developers, as well as one of Europe’s leading temperature controlled logistics and transport businesses.

Moyes says: “These assets are prized for their mission critical nature and long-term contracted revenue streams. Nonetheless, shares in Pantheon Infrastructure change hands at an attractive 13 per cent discount to net asset value.”

That means the shares in the fund are valued more highly than the actual fund, which means easy wins – if that discount narrows. Trusts’ valuation do not always do so, while others might trade at a premium – in other words, more than the sum of their parts.

Investors should note this is a high risk investment and should form part of a diversified portfolio. The trust has total ongoing charges of 1.29 per cent. The fund is up 30 per cent in the last year, but is too new for a five year view.

Depending on which investment platform you use and like any other fund, there may also be share dealing costs, so look to minimise those where you can so they don’t eat into your long-term returns.

When investing, your capital is at risk and you may get back less than invested. Past performance doesn’t guarantee future results.