How do I start planning my 2025 ISA Shares and Shares? With this very strong growth stock

As 2025 approaches, many of us are thinking about new financial goals and one great place to start is a Stocks and Shares ISA.

ISAs are a popular investment option in the UK, allowing people to invest in a range of stocks, goods and other assets, tax-free.

As recent changes mean that higher capital gains tax is paid on the sale of shares, an ISA is now more attractive than ever.

Please note that tax treatment depends on the individual circumstances of each client and may change in the future. The content of this article is provided for informational purposes only. It is not intended to be, and does not constitute, any form of tax advice. Students are responsible for conducting their own due diligence and obtaining professional advice before making any investment decisions.

Here’s how I plan to plan my ISA Shares and Shares for next year, step by step.

Personal goals

Investment goals should shape each ISA strategy. For example, am I investing with retirement in mind? Do I want to use this ISA to build wealth over the next 10 to 20 years? Or am I looking for mid-term goals, like buying a home?

Answering these questions will help me narrow down my choices in terms of investment style and asset allocation.

Risk tolerance

When building an investment portfolio, it is important to consider risk tolerance. Assets allowed in an ISA can range from low-risk options such as bonds to high-risk assets and stocks.

Diversified equity funds or trusts provide a good middle ground.

Balancing a portfolio between high and low risk assets can provide both growth potential and stability.

Research options

The UK offers a wide range of investment options, so taking the time to research is important.

I’ll start by reviewing my existing portfolio to make sure I’m not overexposed to any one sector. Then, I will consider opportunities in sectors that look promising for 2025.

For example:

• Technology and Innovation: many technology companies continue to show strong growth and adaptability.
• Energy and Renewables: with the global push towards clean energy, companies involved in renewables and infrastructure may have long-term potential.
• Consumer Staples and Healthcare: these sectors are traditionally stable and can provide balance to a high-risk portfolio.

My favorite

One stock that I believe would make an excellent basis for an ISA consideration for the first time is UK products and services specialist A diploma (LSE: DPLM).

As a supplier of technical components for factories, laboratories and large projects, the company benefits from growth in several different industries. Its various businesses develop critical solutions for healthcare, energy, aerospace and industry. This level of diversification makes it a very defensive stock that enjoys growth regardless of economic conditions.

The share price reflects this, with annual growth of 21.1% over the past five years.

There are certain risks associated with the Diploma business model.

First, it is highly dependent on a well-functioning supply chain. Disruptions in the supply chain – whether due to geographic reasons, material shortages or transportation issues – may disrupt its ability to meet customer demand or result in higher costs.

It also operates in competitive sectors where it competes with large international distributors and niche local players. If competitors are quick to innovate or offer superior products, Diploma may lose market share in other areas.

Nevertheless, it has all the hallmarks of a solid and reliable growth stock: low debt, adequate interest coverage and a history of consistent growth. Earnings have grown at a rate of 18.8% over the past three years and are predicted to continue at a rate of 16.9% going forward.