Stocks & shares ISA picks

Gavin Haynes, managing director of Whitechurch Securities, suggests tax-free wrappers suitable for low, medium and higher-risk investors.

Low-risk investors

Newton Real Return

Fund manager: Iain Stewart

"This fund invests across different asset classes and manager Iain Stewart will focus solely on producing a positive absolute return. The fund is targeted to outperform cash by 4% on a rolling three-year basis."

Jupiter Strategic Bond

Fund manager: Ariel Bezalel

"With interest rates likely to remain low, corporate bond funds can provide an opportunity to boost income. This is a 'go anywhere' bond fund, meaning that it will invest across the fixed-interest spectrum, while aiming to achieve high income with the prospect of capital growth."

Medium-risk investors

Trojan Income fund

Fund manager: Francis Brooke

"Dividend-yielding shares currently look a good place to provide an attractive total return of income plus potential for capital growth. The fund is positioned for the long term and focused on robust companies with steady and increasing dividend yields."

Fidelity Multi-Asset Strategic

Fund manager: Trevor Greetham

"The fund aims to achieve long-term capital growth by investing in a range of global asset classes, providing exposure to bonds, equities, commodities, property and cash. Performance since launch has been very good."

Higher-risk investors

Henderson European Special Situations

Fund manager: Richard Pease

"At a time when many investors are shunning European equities, there are contrarian opportunities for brave investors in 2012. Manager Richard Pease's long-term, buy-and-hold strategy focuses on out-of-favour companies that have an attractive business model and strong pricing power."

Aberdeen Emerging Markets

Fund manager: Aberdeen management team

"While risk-aversion and inflation concerns saw emerging market stockmarkets suffer heavy falls in 2011, the crisis of doubt from Western investors means these markets are now on cheap valuations. The fund provides widely diversified exposure across different developing regions."

Looking for the lowdown on tax-efficient investments? Brush up on the essential facts in: 10 things you need to know about ISAs.

This article is for information and discussion purposes only and does not form a recommendation to invest or otherwise. The value of an investment may fall. The investments referred to in this article may not be suitable for all investors, and if in doubt, an investor should seek advice from a qualified investment adviser.