There's lots of choice Isa funds available before 5 April application deadline

THE saying goes that there are only two certainties: death and taxes. I can't promise to help you cheat the grim reaper, but I can suggest a way to reduce your tax bill – the Individual Savings Account or Isa. It's one of the most generous tax breaks on offer and, in an environment of rising taxes, it is surprising most people miss out. Here are ten things to consider between now and 5 April – Easter Monday – the last day you can apply for this year's Isa:

1 First and foremost, don't miss this year's Isa because when it's gone it's gone. For many people, the Isa is nothing short of a gift from the Chancellor and every effort should be made to take advantage. Over the course of a long-term investment, the tax protection offered by an Isa could add up to tens of thousands of pounds.

2 Are you a glass half-empty, or a glass half-full kind of person? Do you run from things you are afraid of, or face your fears? Our emotional responses to events are hard-wired – we cannot fight them. Ensure you understand what type of investor (person) you are as your future financial security might depend on it. If you can make cold-hearted investment decisions based on fact, not emotion, you have a better chance of reaching your goals.

3 History shows that after ten barren investment years, such as the past decade, better returns usually follow. Powering these returns could be vast world-changing themes such as the rising influence of emerging markets or a green industrial revolution. If you can, think really long term as growth investments perform best when they are left to grow aided by the magical power of compounding.

4 Think laterally. If, for example, you don't want to pass up the potential of emerging markets, but feel uncomfortable investing directly in them, consider how UK companies are tapping emerging market growth. Drinks maker Diageo has a portfolio of branded spirits that are in demand in China; Burberry too is growing in popularity in emerging markets; and a bank like HSBC has deep Asian roots. All these companies are listed in the UK, but tap emerging opportunities overseas.

5 When choosing the investments for your Isa, remember you have access to hundreds of investment funds through fund supermarkets. These services give you access to the majority of mainstream UK funds and allow you hold them all in one Isa. It's a bit like investment pick 'n' mix. The only downside to this variety is that it can be overwhelming if you are unsure what you want.

6 But you need not fret. These supermarkets also offer filters and planning tools to help you decide which funds might suit you and to compare shortlists of funds. If this still seems too much then consider selecting from one of these provider's shortlists of recommended funds.

7 For no apparent reason, many investors leave their Isa application until the very last minute – literally handing in their forms at midnight on the 5 April. Anyone that does this misses a whole year of investment growth and tax efficiency. So consider being an early bird and doing this and next year's application at the same time.

Remember, eligible investors will be able to invest 40 per cent more in next year's Isa after Chancellor Alistair Darling raised the limit by 3,000 to 10,200.

8 You can take advantage of an Isa through monthly saving. Saving regularly mechanises your investment decisions so you need never worry about when to take the plunge. If your fund falls in value, you win because you buy more shares. If it rises, you win because your shares are worth more. With the discipline of a regular saving plan you can put the day-to-day markets to the back of your mind.

9 If you are lucky enough not to need the income from your investments to make ends meet, reinvest it. The difference reinvesting dividends makes is scarcely believable. Barclays calculated that 100 invested in 1899 would be worth 11,407 by the end of 2009 in capital terms. But with income reinvested that 100 had grown to almost 1.5m.

10 Finally, if you are sure that you do not want to give the tax man any more than is necessary, but are unsure what investment to make, you can "park" your Isa allowance in special "cash park" Isa products. This allows you to open the Isa before the deadline with a cash amount, but make your longer-term investment decision at a later date. It is in the government's interests to encourage people to save. After all, a pensioner able to finance their own hard-earned retirement is not reliant on state handouts. So don't pass up this year's gift from No 11 Downing Street, even though there will be another next year.

Tom Stevenson is Investment Commentator, Fidelity International