Diversification will become the paramount objective of investors, with 21 days to go until this year's Isa deadline.

The global stock market turmoil sparked by Donald Trump's trade wars makes it more important than ever to cast your net wider.

So should the unloved UK stock market be the home for some of your individual savings account (Isa) allowance this year?

Already there are signs of change of heart towards UK plc. The US S&P 500 index has fallen by 5 per cent this year, while the FTSE 100 has risen by 4 per cent.

But learning to love Britain again will need steady nerves, especially after the dip in gross domestic product (GDP) suggesting that the economy has been hard hit by the Budget tax rises and reigniting talk of recession.

Such has been the clamour for America Inc that £20,000 invested in the US stock market in January 2005 would have given a total return (including income) of £229,484 by January 2025. Over the same period, the same sum staked on UK shares would have produced £78,676, according to Fidelity International data.

This difference in outcomes highlights the extent to which British shares have been overshadowed by the US tech razzle-dazzle.

The obsession with American tech has enabled UK companies to be snapped up on the cheap – by US predators looking beyond their nation for bargains. In 2024 there were 105 takeover bids for UK names worth £63billion.

The activity has continued this year, underlining the allure of British enterprises of every type.

If this has made you wonder whether the UK could be a land that you could explore, here are your options.

THINK BIG

The FTSE 100 is the UK's blue chip index but its members earn 80 per cent of their profits from overseas – and they are also a rich source of income.

Broker AJ Bell forecasts that FTSE 100 companies will pay out £83.6billion in dividends this year, with billions more in share buybacks which should give a boost to share prices. The more domestically focused FTSE 250 is predicted to distribute £10billion in dividends. Index funds provide a low-cost route to exposure to these indices. AJ Bell recommends the iShares FTSE 100 ETF (exchange traded fund) and Vanguard FTSE 250 ETF. Broker Interactive Investor suggests Fidelity UK Index which covers the whole market. Active funds (where a professional picks the stocks) that appear in several best buy lists include City of London, Jupiter UK Dynamic Equity and Liontrust UK Growth.

Interactive Investor reports that Isa investors who prefer to make their own choices are going for BAE Systems and Rolls Royce to benefit from higher increased defence spending and BP, in the belief that the energy titan will turn around or be taken over.

Another favourite is the North Sea oil services engineer John Wood which is, once more, in bid talks with the UAE-based Sidara.

Maybe Isa investors should also be buying the High Street banks, a sector which investment firm Lansdowne Partners likes.

THINK SMALL-ISH

If you want to take a long-term gamble on a reassessment of the UK's strengths, smaller and medium-sized companies may offer the most potential.

It is trickier to check out the credentials of these businesses, but there are well-regarded funds and trusts that target this sector.

Financial advisors Birkett Long say that the Mercantile trust should be well-positioned. The trust has stakes in the homeware retailer Dunelm and Warhammer maker Games Workshop.

Fidelity Special Values also holds a mix of mid-tier and household names including NatWest. You could also think even smaller. The junior market Aim is languishing, bringing calls for its closure. But Ken Wotton, manager of the Baronsmead VCT (venture capital trust) says that there is a disconnect between share prices and the fortunes of some Aim companies, presenting the possibility that there may be some hidden gems.

GET TO KNOW UK TECH STARS

A lack of tech players of the stature of Amazon, Apple, or Microsoft lies behind some of the UK market's underperformance.

But the UK has stars in this field. Credit data giant Experian, London Stock Exchange, data group Relx and software giant Sage should suit investors. One route to exposure to these Brit tech names is the Finsbury Growth & Income trust whose share price is at an 8pc discount to its net asset value (NAV).

The Lindsell Train UK Equity fund has an almost identical portfolio. Their manager Nick Train has lost his reputation as a star in his field. But perhaps this could be restored with a new appreciation of Experian and the rest.

Finsbury Growth & Income also holds the iconic British fashion brand Burberry whose designs made it one of the stars of the recent London Fashion Week.

Beleaguered Burberry was one of my UK plc bets last year. The outcome has been gratifying, but I am staying put as this may only be the beginning of the revival of the label and its shares. I am going to be adding to my UK Isa holdings in the hope that the trajectory for our stock market is also upwards. But I will be making monthly contributions to funds and trusts, so lessening my gamble.

The tax-free allowance is £20,000 and you use it or lose it. But at this testing geopolitical time, some caution is advisable.