The investment habits of Early Bird ISA millionaires

Kate Marshall, lead investment analyst at Hargreaves Lansdown, highlights how ISA millionaires tend to move early in the tax year, putting money to work quickly rather than waiting for the deadline.

Kate Marshall, lead investment analyst, Hargreaves Lansdown:

“ISA millionaires stand out not just for how much they have invested, but when they invest. Many waste no time at all, topping up their ISAs in the opening days of the tax year. It’s a habit that underlines the importance of time in the market, rather than trying to time the market.

By acting early, these investors give their money longer to grow, benefiting from compounding over the full tax year. In contrast, few leave it until the final deadline, with last-minute investing the exception rather than the rule.

This trend is paired with a preference for equities. ISA millionaires allocate a greater proportion of their investments to individual shares than non-millionaires, reflecting a higher risk appetite. However, funds still form a part of their portfolios, helping to maintain diversification.

Looking at their most popular holdings, ISA millionaires blend US growth opportunities with UK income stocks. Names like Shell, Rolls-Royce, Tesla and NVIDIA sit alongside stalwarts such as Legal & General, National Grid and Lloyds Banking Group.

Their fund choices also reflect this approach. Alongside globally diversified index trackers, ISA millionaires favour well-established active funds and income strategies. The presence of funds like Fidelity Special Situations and Lindsell Train Global Equity demonstrate a focus on active management to boost long-term performance potential, while funds such as Artemis Income and Artemis Global Income show that some ISA millionaires are looking for diversified exposure to income-paying stocks. Elsewhere, global and UK index funds ensure broad market exposure.

Overall, ISA millionaires succeed through early action and a diversified investment approach, making the most of their allowances as soon as possible and staying invested for the long term.”

HL data