Stocks and shares Isas allow you to invest in funds, trusts and individual sharesBut to improve your chances of generating a higher income long-term, stocks and shares Isas are a good bet. These allow you to invest in funds, investment trusts and individual company shares.Some people also invest in assets they believe have the potential for strong growth and take profits from time to time as a form of income.
You would need around £225,000 in your Isa to achieve a tax-free income of £10,000 a year, according to calculations from investment platform Interactive Investor. For a £225,000 Isa pot to produce £10,000 a year of income, you will need to be targeting a 4.55 per cent return for your overall portfolio.
Artemis Income, yielding just over 4 per cent, is a good pick according to Kate Marshall, investment analyst at Hargreaves Lansdown. This is a UK-focused fund, with RELX and venture capitalists 3i among its top holdings.This is one of the 20 trusts that has increased its dividend every year for 20 years and has pharmaceutical group GSK and oil and gas firm Shell among its top holdings.