Britain’s ISA Millionaires Shun the “Magnificent Seven” – Here’s Where They Invest Instead The rise of tech giants such as Alphabet, Amazon, Apple, Meta, Microsoft, Nvidia, and Tesla—commonly known as the Magnificent Seven—has dominated global markets in recent years. However, Britain’s ISA millionaires have largely avoided these high-flying stocks, opting instead for investments that offer stability, strong dividends, and long-term growth.
New data from Hargreaves Lansdown, the UK’s largest stockbroker, reveals that not a single one of these tech titans features among the most popular stocks held by ISA millionaires. Their cautious approach is proving wise, as concerns about the sustainability of tech growth shake investor confidence.
Why ISA Millionaires Avoid the “Magnificent Seven”
Despite their stellar past performance, tech stocks have shown signs of volatility and potential growth slowdowns. Industry experts, including Jamie Mills O’Brien, Investment Director at Abrdn, have raised concerns about the tech sector’s ability to maintain its momentum.
“Recent jitters in the tech market reinforce our view that investors should not be confining themselves only to the so-called Magnificent Seven when looking for growth,” O’Brien said.
“The gap in earnings growth between the largest stocks in the US market and the rest of the market is the narrowest it has been in a long time.”
Rather than chasing short-term trends, ISA millionaires prioritize long-term value, reliable dividends, and financial stability. This conservative approach has allowed them to steadily build their wealth and avoid market fads.
Where Do ISA Millionaires Invest Instead?
Instead of chasing high-risk, high-reward stocks, Britain’s wealthiest ISA investors prefer established British companies that have demonstrated consistent performance and strong dividends.
Top Stocks Favored by ISA Millionaires
According to Hargreaves Lansdown, the 10 most popular stocks among ISA millionaires include:
- Legal & General – A leading financial services group with a strong dividend record.
- Phoenix Group – The owner of well-known brands like SunLife and Standard Life.
- Aviva – A major player in the insurance sector, offering long-term stability.
- M&G – A well-established investment management firm.
- BP – A global energy giant benefiting from consistent oil revenues.
- Rio Tinto – A mining powerhouse, providing exposure to commodities.
- Michelmersh Brick Holdings – A top UK clay brick manufacturer with steady demand.
- Intercede Group – A cybersecurity company catering to growing digital security needs.
- Beeks Financial Cloud Group – A cloud computing company with future growth potential.
- Artemis Income Fund – A diversified income fund known for consistent returns.
A Balanced Investment Strategy: Funds Over Stocks
While ISA millionaires do hold individual stocks, most prefer a diversified investment approach. Instead of taking risks on single companies, they tend to hold funds or a mixed portfolio, reducing volatility and ensuring steady growth.
“They’re not in a hurry to trade them regularly either as, while most ISA millionaires traded in 2024, this has tended to be infrequent,” said Kate Marshall, an analyst at Hargreaves Lansdown.
Some of the most popular funds held by ISA millionaires include:
- L&G Funds (Five of the most popular funds)
- Jupiter India – A fund focused on the rapidly growing Indian market.
- Artemis Income – A UK-based fund focusing on dividend-paying stocks.
- WS Blue Whale Growth – A global equity fund known for its high-performance stock picks.
This broad international mix of funds demonstrates a diversified investment approach, with a balance between UK-focused assets and global opportunities.
How to Become an ISA Millionaire
Becoming an ISA millionaire requires a combination of discipline, patience, and strategic investing. With an annual tax-free contribution limit of £20,000, the maximum amount that can be invested in a decade is £200,000. However, achieving £1 million requires:
- Consistent Contributions – Maxing out your ISA allowance annually.
- Smart Investment Choices – Avoiding market trends and focusing on long-term growth stocks and funds.
- Patience and Discipline – ISA millionaires are not frequent traders; they allow their investments to grow steadily over time.
- Reinvestment of Dividends – Compounding returns by reinvesting income from stocks and funds.
While the average ISA millionaire is 72, achieving this milestone doesn’t necessarily take a lifetime. In fact, the youngest ISA millionaire in Hargreaves Lansdown’s records is just 27 years old—a testament to the power of early investing and strategic decision-making.
Final Thoughts: Stability Over Speculation
ISA millionaires have proven that slow and steady wins the race. Rather than chasing the latest market trends, they invest in tried-and-tested companies, favoring dividends, consistency, and a diversified approach.
With growing uncertainty in the tech sector, their foresight in avoiding the Magnificent Seven appears to be a wise strategy—one that future investors may want to adopt for long-term wealth-building success.