Build Your Own Investment Plan with Stocks and ETFs

What's Changed

Investment Plans were previously built entirely from ETFs. You can now add individual stocks alongside ETFs within the same plan, giving you more flexibility to reflect your own convictions while still keeping the structure and automation of a Plan.

Ready-Made vs Self-Build: What's the Difference?

Ready-made Investment Plans choose a diversified mix for you, matched to a risk profile such as Conservative, Balanced, Dynamic, or Growth. The allocation decisions are made for you — useful if you want a structured, low-effort approach to long-term investing without having to research individual holdings.

A self-build plan works the other way round. You choose which stocks and ETFs to include, and set the percentage allocated to each, until your plan reaches 100% allocated. Every decision,  what to hold and how much is yours.

Ready-made suits you if:

• You want a diversified starting point without picking individual holdings
• You prefer a plan matched to a defined risk profile
• You want minimal ongoing decision-making

Self-build suits you if:

• You already have views on specific companies or sectors you want exposure to
• You want to combine broad market exposure through ETFs with targeted stock picks
• You want full control over your allocation without managing disconnected positions
• You are comfortable making and revisiting your own investment decisions

If you are unsure which approach is right for you, our guide to active investing vs passive investing explains the key differences in philosophy and approach.

How to Build Your Own Plan

Setting up a self-build Investment Plan is straightforward:

1. Search and add the stocks and ETFs you want to include
2. Set the percentage allocation for each holding
3. Continue until you reach 100% allocated across all your chosen holdings
4. Set your contribution amount and a regular contribution schedule if you want one
5. Confirm to start your plan

You can include as many or as few holdings as you choose from a simple two or three position plan to a more diversified mix across multiple sectors and geographies.

Combining Stocks and ETFs in One Plan

One of the most practical aspects of the self-build feature is the ability to combine stocks and ETFs within the same plan.

A common approach is to use ETFs as the foundation, providing broad, low-cost diversification across a market or sector and then add individual stocks where you have a stronger view or want more targeted exposure.

Example allocation:

This approach lets you benefit from the diversification and low costs of ETF investing while expressing higher-conviction views on individual companies, all tracked through a single plan rather than as separate, disconnected positions.

For more on how ETFs work and how to choose between them, read our guides to the most popular ETFs and how to choose the best ETFs.

Setting and Managing Your Allocation

Getting your initial allocation right is only half of the work, the more important habit is revisiting it regularly.

As some holdings grow faster than others, your original percentages will drift over time. A stock that performs strongly will take up a larger share of your plan than you originally intended, increasing your concentration in that position and shifting your overall risk profile.

What rebalancing means in practice:

If you set a plan with 40% in a global ETF and 20% in a technology ETF, but the technology ETF doubles in value while the global ETF grows modestly, your technology weighting might drift to 35% or more — significantly above your original intention.

Revisiting your allocation periodically — and adjusting where needed — keeps your plan aligned with how you originally intended to invest. How often you rebalance depends on your own preference, but reviewing your allocation quarterly or after significant market moves is a sensible starting point.

Tax Efficiency: Using a Self-Build Plan Within an ISA

One of the most important considerations for UK investors building a long-term portfolio is tax treatment.

Profits from investing in stocks and ETFs outside of a tax wrapper are subject to Capital Gains Tax on gains above the annual CGT allowance (currently £3,000 for 2024/25), and dividend income above the £500 dividend allowance is subject to Income Tax.

Holding your self-build Investment Plan within a Stocks & Shares ISA shelters all gains and income from tax entirely — meaning every pound of growth and every dividend stays in your portfolio rather than going to HMRC.

The annual ISA allowance is £20,000 per tax year. For long-term investors, maximising this allowance consistently is one of the most impactful steps you can take to grow wealth efficiently. Read our guide to understanding ISAs and maximising your ISA contributions for more detail.

Your capital is at risk. The value of your investments may go up or down. Tax treatment depends on your individual circumstances and ISA regulations which may change.

What to Consider Before Self-Building

A self-build Investment Plan gives you more control, but more control also means more responsibility. Before building your own plan, consider the following:

Diversification — a self-build plan is only as diversified as the holdings you choose. Concentrating too heavily in one sector, geography, or individual stock increases your risk relative to a broader market exposure. Using ETFs as the foundation of your plan helps manage this.

Research — individual stock selection requires more research than choosing an index-tracking ETF. Understanding a company's business model, financial health, and competitive position takes time and knowledge. Our guide to how to invest in stocks provides a useful starting point.

Ongoing commitment — unlike a ready-made plan which manages allocation decisions for you, a self-build plan requires you to monitor and rebalance periodically. If you are not able to commit to reviewing your plan regularly, a ready-made plan may be a better fit.

Risk tolerance — individual stocks are generally more volatile than diversified ETFs. A plan concentrated in individual stocks carries more company-specific risk than one built primarily from broad market ETFs. Read our guide to alpha vs beta investing to understand how to think about risk and return in portfolio construction.