Where you can invest your money
These expert recommendations could help you find the fund option that’s the right fit for your precious savings
Selecting where to invest your annual ISA is no easy task, as there are hundreds of interesting options available. Where do you start? Here, four leading financial experts suggest investment funds that could be suitable for lower, medium and higher-risk investors.
LOWER-RISK INVESTORS JUPITER STRATEGIC BOND
This fund boasts a current yield exceeding 5% and the flexibility to exploit global opportunities, says Darius McDermott, managing director of FundCalibre. “This manager prioritises cautiousness and minimising potential losses,” he says. “The team also uses derivatives for strategic short positions to potentially benefit from falling bond prices.”
CAPITAL GEARING TRUST
A goal of preserving and growing clients’ capital over time above the rate of UK inflation could be attractive, according to Dzmitry Lipski, head of fund research at Interactive Investor. “Currently, the trust has a notable emphasis on indexlinked government bonds, which make up almost half of the portfolio. These bonds can offer protection when stock markets fall.”
INVESCO TACTICAL BOND
This fund focuses on bonds and they’re seen as a more conservative option than company shares, Kate Marshall, lead investment analyst at Hargreaves Lansdown, points out.
“We think this is a great option to diversify an investment portfolio focused on shares, and could bring some stability to a more adventurously invested portfolio,” Marshall says.
PERSONAL ASSETS TRUST
The aim is to protect and preserve the value of investors’ capital while growing it over the longer term, according to Jason Hollands, managing director at Bestinvest. “In a booming stock market, investors will benefit from rising share prices, but it won’t shoot the lights out. However, it has a strong track record of protecting value in tougher markets.”
MEDIUM-RISK INVESTORS BNY MELLON MULTI-ASSET INCOME
For income-oriented investors, the BNY Mellon Multi-Asset Income fund is another option, according to FundCalibre’s Darius McDermott. “This fund seeks to achieve a stable income with the potential for capital growth over the long term by investing in equities, bonds and alternatives,” McDermott says.
WELLINGTON GLOBAL STEWARDS FUND
This a global equity fund that invests in companies displaying exemplary stewardship, according to Interactive Investor’s Dzmitry Lipski.
“The team believes such companies are better positioned to sustain high returns in the long term through successfully investing in people and the planet to build sustainable profit,” Lipski says.
ARTEMIS INCOME
This is a conventional UK equity income fund that focuses on companies with robust cash flows, explains Hargreaves Lansdown’s Kate Marshall. “It could form part of the foundation of an income portfolio, diversify a broader global portfolio, or diversify the income paid by bond funds or a global equity income fund.”
WS EVENLODE GLOBAL INCOME
According to Bestinvest’s Jason Hollands, this fund’s approach is about buying and holding companies for the long term. “It invests in high-quality, mostly large companies from around the globe that generate bucket-loads of cash, enabling them to pay and grow dividends,” he explains.
HIGHER-RISK INVESTORS SCHRODER BRITISH OPPORTUNITIES TRUST
Investors often overlook innovative companies, FundCalibre’s Darius McDermott points out.
“This trust actively seeks exciting high-growth UK companies, both private and publicly traded,” he says. “While this is a higher-risk approach, it can also result in powerful returns if these companies succeed.”
POLAR CAPITAL SMART ENERGY FUND
This portfolio looks to benefit from the global shift towards sustainability, according to Interactive Investor’s Dzmitry Lipski. “The fund invests across four investment clusters: clean power generation, energy transmission, energy conversion and storage, and energy efficiency.”
FSSA ASIA FOCUS
This is higher-risk, as Asian and emerging markets tend to be more volatile than developed markets, points out Hargreaves Lansdown’s Kate Marshall. However, they offer potentially high levels of growth. “The fund could form part of a globally diversified portfolio with a longterm outlook,” Marshall adds.
ASHOKA INDIA EQUITY INVESTMENT TRUST
This trust has delivered stellar returns since launch, Bestinvest’s Jason Hollands observes. “India is one of the most exciting investment opportunities on the planet, with a young and fast-growing population, and a programme of modernisation,” he says.