Tuesday 21 March 2017

Five Best ISA Bank Account In The Market


The UK benchmark index is up 20 per cent over the past 12 months, while the best cash accounts pay just 1 per cent.

Equity investors also get dividends on top, with the index currently yielding 3.69 per cent a year.

This may tempt more to choose shares over cash when deciding how to invest this year’s £15,240 tax-free individual savings account (Isa) allowance before the April 5 deadline.

However, equity Isa funds are not for everybody, says Patrick Connolly, certified financial planner at Chase de Vere: “Risk-averse savers should avoid the stock market altogether, while everybody should reduce their exposure as they get older by also investing in other areas such as cash, bonds and property.

Markets could be vulnerable at today’s record highs, but if you know the dangers and are prepared to invest for at least five or 10 years, you should easily beat cash.”

These fabulous five Isa funds have more than doubled in value over the last five years, with some returning as much as 180 per cent.


Although past performance is no guarantee of future returns, their long-term success cannot be ignored.


Terry Smith is currently the brightest star in the fund management galaxy with his vehicle Fundsmith Equity.

It grew an incredible 163 per cent over five years, according to TrustNet.com, and is currently the best-selling fund in the country, managing total assets worth more than £10 billion.

Before buying any fund, no matter how successful, always check where it is invested to avoid doubling up with similar funds you already hold.

Fundsmith Equity is nearly two thirds invested in the US, with lower exposure to the UK and Europe.

Its top holdings include computer giant Microsoft, soft drinks maker Pepsico, tobacco giant Philip Morris and InterContinental Hotels.

This means it has benefited from the surge in the US stock market over the past five years, but the US may not lead the pack forever.

Shares have soared since Donald Trump was elected president, but SYZ Asset Management chief economist Adrien Pichoud warns market euphoria may be overdone: “It remains to be seen how much of Trump’s extremely ambitious programme will turn into actual reforms.”


If Trump disappoints, US stock markets could take a tumble and Fundsmith Equity could lose some of its shine.

Another way to access the US is through a low-cost tracker, such as Vanguard S&P 500, which is up 144 per cent over five years.

Artemis Global Income also invests internationally and has returned 125 per cent.


Fund managers Michael Lindsell and Nick Train are also flying high, boasting two of the UK’s top-selling funds, according to Hargreaves Lansdown.

Lindsell Train Global Equity grew 143 per cent over the past five years, but with less US exposure, as it is also spread across the UK, Japan and Europe.

Its top holdings include household goods company Unilever, spirits giant Diageo, video game maker Nintendo and payment company PayPal.

For greater exposure to domestic markets, you might consider Lindsell Train UK Equity, which invests in a concentrated portfolio of just 24 stocks and has grown 115 per cent over five years.


Launched in 1909, when Edward VII was on the throne, Scottish Mortgage Investment Trust has a truly long-term track record.

It remains sprightly today, growing 168 per cent over five years. This £4.75 billion investment trust is now a FTSE 100 company in its own right, having been elevated to the index earlier this month.

Manager James Anderson invests almost half the fund in US firms, including online retailer Amazon, electric carmaker Tesla Motors and social media giant Facebook, with hefty exposure to the eurozone and China.

Helal Miah, investment research analyst at The Share Centre, is an admirer: “With 95 per cent of its holdings in international stocks, it has benefited from the weaker pound post Brexit, but performance could slip if sterling strengthens or the US market dips.”


Smaller companies are considered more risky than blue chips, but can be far more rewarding.

Damien Fahy, founder of MoneyToTheMasses.com, names this R&M fund as his pick: “It has smashed the market rising 180 per cent over five years, double the average return on the sector.”

Its top holdings include gas installers Smart Metering Systems, premium tonic water maker Fever-Tree and fashion retailer BooHoo.com.

Old Mutual UK Smaller Companies Focus has also done well, soaring 173 per cent over five years. MARLBOROUGH EUROPEAN MULTI-CAP

Many Britons shy away from investing in Europe because of the continent’s slow growth and economic troubles, but some funds still deliver the goods.

Fahy tips this Multi-Cap flyer, which grew 128 per cent over five years: “Manager David Walton has easily outperformed his peers during the political turmoil engulfing the EU.”

Experienced fund manager Richard Pease has returned 106 per cent over the past five years with FP Crux European Special Situations.



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