Hurrah — the 2022/23 tax year begins today! That means I can put up to £20,000 in my Stocks and Shares ISA over the next 12 months. But where should a predominantly growth-focused Fool like me be investing this money? Well, here are just three examples of what I might buy if I restricted myself to the FTSE 100 index.
Rentokil Initial
It may not be the most attractive sector to operate in, but I continue to like pest control and hygiene firm Rentokil Initial (LSE: RTO). That’s despite its shares falling 7% year-to-date.
That dip looks disappointing at face value. However, some FTSE 100 stocks have fared a lot worse. Moreover, this company has delivered stellar capital gains for investors over the last five years. That’s a far better period of time to gauge performance.
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Naturally, Rentokil isn’t devoid of risk. The valuation of 27 times forecast earnings could come back to bite investors if current trading falls below expectations. Even if this weren’t the case, the ongoing rotation into value stocks could drag the RTO share price lower.
So long as I we’re happy to hold for years however, an investment here could prove lucrative. The post-pandemic drive toward keeping property and environments as squeaky clean as possible should prove a lasting tailwind.
Rightmove
Having used the property portal recently, I continue to believe Rightmove (LSE: RMV) is an excellent choice for a growth-focused ISA portfolio. The fact that I didn’t even contemplate looking elsewhere is evidence to me that this FTSE 100 company continues to have a dominant hold in its industry. Throw in its extraordinarily high operating margins and returns on capital and the investment case here looks as strong as the UK property market.
Of course, there’s always the potential for the latter to slide into reverse gear, especially given the galloping rise in the cost of living. Such a scenario could see the Rightmove share price tumble by association.
Still, a near-17% fall in the stock since the beginning of 2022 suggests some of this is already being priced in. Even if there is further selling pressure ahead, I’d use this as an opportunity to load up rather than steer clear.
As quality growth stocks go, Rightmove is hard to beat.
Halma
A final FTSE 100 stock I’d consider buying with my brand spanking new ISA allowance would be health & safety tech firm Halma (LSE: HLMA). I’ve banged on about this company for a few months now for the simple reason that I think the market mayhem in 2022 is giving me a great buying opportunity.
[fool-stock-chart ticker=LSE:RMV]
Like Rentokil, I actually think the £10bn-cap is a great defensive pick. The need to provide greater protection for workers is a boon for the company and one that, thanks to increased regulation, looks very sustainable.
One of my few ‘issues’ with Halma however, is the valuation. A P/E of 36 for FY23 is very rich. As such, I’d probably be inclined to buy in installments rather than all in one go. No one knows where the share price will go next, but this makes the process psychologically easier.
Owning a slice of Halma on top of Rentokil and Rightmove also adds a healthy dollop of diversification to my portfolio.
