When it comes to selecting funds for your Stocks & Shares ISA or SIPP (Self-Invested Personal Pension), you have no shortage of options. According to the Investment Association, there are currently around 3,000 funds available to UK investors.
Of course, some funds have better track records than others. With that in mind, here’s a look at what I consider to be some of the best funds for an ISA or SIPP today.
If you’re looking for growth, one top UK-focused fund I would definitely check out is the CFP SDL UK Buffettology fund. What I Iike about this fund is that portfolio manager Keith Ashworth-Lord invests with a Warren Buffett-like approach, focusing on high-quality companies – both large and small – that have strong competitive advantages. It also has an incredible track record, having delivered a return of around 132% over the last five years. Fees are 1.19% per year through Hargreaves Lansdown.
Other funds I like for UK growth include Chelverton UK Equity Growth (five-year return 159%), Slater Growth (five-year return 91%), and Lindsell Train UK Equity (five-year return 76%).
If your focus is more on dividends and/or portfolio stability, I’d take a look at the TB Evenlode Income fund. This fund also invests in high-quality businesses. However, it’s more focused on large-cap, dividend-paying FTSE 100 companies such as Unilever, Diageo, and Sage. It has returned about 78% over the last five years, which is a fantastic performance for an income-focused fund. Fees are 0.9% per year through Hargreaves.
Other funds I hold in high regard include Franklin UK Rising Dividends (five-year return 53%), and Man GLG UK Income (five-year return 69%).
If you’re looking for international exposure, it’s hard to look past Fundsmith Equity. Since its launch in November 2010, this fund has delivered a return of over 300%, outperforming its benchmark by a huge margin (five-year return 137%). One reason I Iike Fundsmith is that it appears to be well placed to capitalise on a number of powerful structural trends in the years ahead. Given its exposure to high-quality companies with strong long-term growth prospects, I believe there’s a good chance it will continue to deliver strong long-term returns for investors. Fees are 0.95% through Hargreaves.
Also in the global equity space, I like the Lindsell Train Global Equity fund. This one, which has returned about 142% over the last five years, also has a brilliant long-term track record. It’s available with a low annual fee of 0.5% through Hargreaves.
Other funds I’d consider here include Blue Whale Growth (launched in September 2017 and has been a top performer since then) and Morgan Stanley Global Brands (five-year return 113%).
Finally, if you’re interested in adding a niche fund to your ISA or SIPP, I’d suggest having a look at the Fidelity Global Technology fund. Given that technology is having a huge impact on the world right now, I think allocating a little bit of capital to the tech sector is a smart move. This fund has returned a very impressive 210% over the last five years and fees are 1.04% through Hargreaves.
The post Looking for the best funds for a Stocks & Shares ISA or SIPP? I’d invest in these top performers appeared first on The Motley Fool UK.
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Edward Sheldon owns shares in Hargreaves Lansdown, Unilever, Diageo, and Sage, and has positions in the Fundsmith Equity, Lindsell Train Global Equity, Franklin Rising Dividends, Blue Whale Growth, and Lindsell Train UK Equity funds. The Motley Fool UK owns shares of and has recommended Unilever. The Motley Fool UK has recommended Diageo, Hargreaves Lansdown, and Sage Group. Views expressed on the companies mentioned in this article are those of the writer and therefore may differ from the official recommendations we make in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool we believe that considering a diverse range of insights makes us better investors.
Motley Fool UK 2020