Last week, the next tax year took place, and with it, for many investors, a completely modern ISA benefit.

A lot of attention is paid to a maximum annual contribution of 20,000 pounds, which many people can make to ISA. But of course not everyone has a spare 20,000 pounds nearby – or anything nearby.

The good news is that this is only the maximum. It is possible to start investing in ISA much less.

It should be remembered that tax treatment depends on the individual circumstances of each client and may change in the future. The content in this article is provided only for information purposes. It is not to be, nor does it constitute any form of tax advice. Readers are responsible for implementing their own diligence and obtaining professional advice before making investment decisions.

Placing 800 pounds to work

I think there is enough 800 pounds.

For example, an crucial though a plain principle of risk management of investors on the stock exchange is diversification. It is basically not putting all the eggs in one basket.

Another consideration is whether the fees and costs are eaten by a disproportionately high ISA percentage. I think that 800 pounds are enough that it does not have to be this way, although he tries to avoid this risk that the investor makes sense to compare various actions and divide the ISA to see what best suits their needs.

Setting the target

Different people have different goals while investing.

For some, getting passive income in the form of dividends is the name of the game. For others, buying shares that look disappearing, and keeping them in the long run in the hope of a sedate raise in stock price is what they want. Some investors strive for both dividends and an raise in share prices.

Even at 800 pounds, I think it makes sense to explain the goals and then make investment choices based on this.

Finding shares for purchase

The goal is one thing – how about it that it revives it?

The last stockout turbulence has raised several potentially excellent purchase options for ISA.

But it can be a disturbing time for every investor, not to mention the modern one. It makes sense to stick to the area that is understood. Instead of comparing the price of the action with what was before, I think the approach is the same as an experienced investor always uses: looking for actions that are valued well below what is suggested by business prospects in the long run.

One share to be considered

As an example, one share, I think that investors should currently consider ISA Scottish Mortgage Trust (LSE: SMT).

It is investment trust, which means that it maintains rates in various companies. This can offer a certain level of diversification even to an investor with just a few hundred pounds to lose. It can also buy rates in private companies that usually do not sell shares to diminutive private investors. For example, Scottish Mortgage has shares at Rocket Company Spacex.

Scottish Mortgage Actions in recent months have changed a lot due to the huge exposure of Trust to technical actions such as Nvidia AND ASML. Because the technology sector still grabs the uncertainty and enthusiasm of investors in the US, I see the risk that this will harm the net asset values ​​of the Scottish mortgage – and its price.

However, I perceive investing as a long -term activity. Scottish Mortgage has a proven opportunity to find technology winners early.