Last-minute funds to buy before the Isa deadline

Savers have just a few days left to make use of their £ 20,000 Isa allowance before the new financial year starts on April 6.

With rampant inflation and paltry rates on saving accounts, investing in the stock market remains one of the only ways to preserve the value of your money.

For investors looking for lastminute additions to their Isas, Dzmitry Lipski of the stockbroker Interactive Investor highlighted the Montanaro Better World fund, which has returned 69pc for investors since its launch in April 2018.

“It invests in small and mediumsized companies that support the United Nations Sustainable Development Goals,” he said. “The managers, Charles Montanaro and Mark Rogers, focus on six impact themes: environmental protection, the green economy, healthcare, innovative technology, nutrition and well-being.”

Mr Lipski also mentioned the Baillie Gifford Responsible Global Equity Income fund, which has returned 53pc in the past three years.

“It aims to achieve sustainable income and capital growth over the longer term by investing responsibly in global stocks,” he said. “The managers, James Dow and Toby Ross, exclude so- called ‘sin stocks’ in certain industries such as tobacco and alcohol and follow the principles of the UN Global Compact. This covers areas such as human rights, labour, the environment and anti-corruption.” The fund yields 1.9pc.

For cost- conscious investors, tracker funds are the best option. The iShares UK Index fund provides broad exposure to British stocks by tracking the FTSE All- Share index, which includes nearly 600 companies. The fund costs 0.05pc a year.

The HSBC MSCI World ETF is a cheap way to get access to global markets. It tracks more than 1,500 companies and charges 0.15pc a year.

But savers do not need to make snap decisions about where to invest their money. Laith Khalaf of the broker AJ Bell said: “We know from experience that lots of DIY investors will be opening their accounts right up to the final buzzer.

“Some may prefer a ‘park and glide’ approach rather than investing their full Isa contribution as one lump sum. By parking money in the Isa as cash and then drip feeding it into investments gradually, investors can smooth out the ups and downs of the stock market and mitigate the risk of a market fall just after you have committed a large sum of money.”

The Isa deadline is April 5.