The Best Funds and Investment Trusts in the UK

Finding the best funds and investment trusts is a good way to put your money to work as well and as easily as possible. But how can you find those options and make sure they’re the right ones for you? There are several issues to consider, and you want to focus on addressing those concerns so you’ll have the best possible experience with your investment goals and plans. Asking experts is always a good idea, too, because they have the experience you’re looking for when it comes to choosing the right opportunities. Depending on your investment abilities and goals, what works for one person in thier investment portfolio may not work for you. That’s worth addressing before you start choosing funds and trusts, so you don’t end up with a problem because you tried to follow the crowd and found that what they were doing wasn’t right for you. Making your own decisions is the right move.

But when you make your own decisions, you want to make sure they’re based on solid information that’s going to give you everything you need to be successful in investing. A lot of people get into trouble with their investing goals because they don’t choose wisely or they don’t learn what they need to know before they get started. That gets them into problems quickly, since they start investing without having the knowledge that can help them become — and remain — successful. Rather than take that risk, it’s better to make sure you understand what you need to know and how you can get the best value for your investment dollars. With that said, here are some of the best options and opportunities for funds and trusts.

If You’re a Cautious Investor, Consider These Options

Rathbone Strategic Growth Portfolio — This fund is part of a newer breed of funds that’s interested in targeting risk while still working to maximize the growth that investors can see with it. The way it’s designed, investors have some shielding during times when the market experiences a downturn. But that doesn’t mean there’s no risk at all, as any investment can be risky at time. Instead, it simply means that you’ll be more likely to see lower risk with this fund while still having the chance for a higher level of growth than you might otherwise see with a fund that doesn’t carry a lot of risk. Traditionally, funds that are low risk are also low growth, and high-risk funds can make a lot more money faster when they perform well. Having a fund that brinds good returns and keeps risk low is a great choice for more cautious investors who are trying to maximize the value of their investment.

Newton Real Return — Capital protection is the most important consideration for this particular fund. Over time, the growth rate is approximately four percent. At least, that’s the target growth rate. It’s not always met, as there can be downturns that affect it and stop it from fully growing the way it’s hoped to. But due to the risk-adverse nature of this fund, investors don’t have to worry as much about losing the investment money they put into this fund. The fund’s approach to investing is very flexible, so it’s easier to make changes if the market isn’t performing as expected or if a particular area or aspect of the fund needs adjusted or reconsidered. That can make a big difference in how well investors do, overall, and can keep them coming back because they see that they can lower their risk and still have the opportunity for good returns that are designed for long-term success.

Vanguard LifeStrategy — Investors can choose their levels of risk with this fund, which makes it easier and safer for those who want to be more cautious along with a good choice for people who want to take some larger risks. By having a very diversified investment portfolio that they chose for themselves, investors have the peace of mind that comes with knowing that they invested their money the way they wanted to. Being able to have some different choices can be extremely important to investors who are cautious, because they can more easily make choices and changes that protect their interests. They may not be as concerned about making as much money, but may prefer to make a smaller amount and know that they’re far less likely to lose their original investment dollars. This can be a good way to help ensure investment success and security.

Ready for Bonds? Consider These Choices

Royal London Sterling Extra Yield — This flexible and strategic bond fund offers investors a lot of income and growth opportunities, but it’s not for those who are risk-adverse. As a much more high-risk option, this is a bond fund for those who are looking for long-term gains that are superior to many other bond funds but who are also willing to assume a higher level of short-term risk. Significant losses are possible with this bond fund, simply from the volatility it possesses. But there are also opportunities for gains that aren’t generally going to be seen with other funds or other types of bond choices. While bonds can be an excellent investment, they can also fail to perform at the level that’s hoped for by investors. That’s something to be aware of when it comes to choosing a fund like this, and a good understanding of the true risks and benefits is very important.

CVC Credit Partners European Opportunities — Resilient funds are a big part of what you’ll find with this particular investment opportunity. The managers of this fund look for bonds that have a sufficient yield so they can handle a rise in rates without seeing significant loss. Some bonds can also benefit from an environment where rates are rising, and this fund looks for those types of bonds so that their investors don’t end up with losses due to changes in the bond rate. While bonds may not have as high or rapid of a growth rate as other types of investment portfolios in all cases, they can certainly provide a quality investment experience for those who are willing to assume some risk and consider the long-term focus instead of looking only for short-term gains. For investors with these goals, this fund can be one of the better choices to explore.

These Are the Income Funds You’ll Want to Explore

Schroder Income Maximiser — For investors who aren’t as focused on income growth, but who are looking for the maximum level of income they can receive right now, this is one of the best funds. It’s operated by experts who are focused on making sure investors get the level of income they’re looking for from their investments so they can use that income now, not years in the future. The yield for this fund is approximately 6.8 percent, which is significantly more than many funds can offer. However, it’s important to note that getting more income now means sacrificing some income for the future. Not only will investors in this fund give up some future income growth, but they’ll also give up some future capital, as well. That’s worth considering, but it’s also not a problem or concern for every investor. Those who want a good income yield in the present day would do well with this fund.

Threadneedle UK Equity Income — This fund is focused on both steady income and capital growth. That makes it an excellent balance for investors who want to see income now but who also want to build their capital over time. The flexible nature of this fund allows it to develop naturally and lets investors make changes to their investment so they have the kind of mix and balance that works properly for them. With a strong focus on the selection of stocks, this fund looks at how it can generate income through companies that are performing well now and companies that are struggling now but working toward recovery. These companies may not be paying dividends at the moment, but they have the potential to do so in the future. By taking a gamble on them in the present, it’s quite possible that investors will be rewarded later on. That’s worth a gamble for a lot of people who focus on this fund.

Murray International — The manager of this fund has been called a bit of a contrarian, but that’s usually a compliment for him because it’s meant in a way that’s indicative of how much he gets done even though his methods aren’t always as common as one would expect. With a diversified and attractive exposure to a lot of high-quality businesses, all of which are focused on the security of their dividends. Emerging market currency exposure is an important part of this fund, too, because it gives those who are interested in this particular fund the chance to find a number of different ways to move their investment dollars forward. In short, it’s easy for this fund to cater to a lot of different options and opportunities, which makes it more likely that investors will accept and enjoy all it can offer to them. For unique options and ways of doing things, this is the fund to choose over others.

UK-Only Options and Opportunities

Investec UK Alpha — A core UK equity fund with a high level of diversification, this is a potentially great choice for any investor who’s interested in spreading their investment dollars around so those dollars can work for them as effectively as possible. This fund is invested in all different size companies, but makes sure that at least 50 percent of the companies where it places its investments are FTSE 100 companies. A lot of markets are focused excessively on short-term factors and developments, and the manager of this fund doesn’t believe that’s necessarily the right way to do things. Instead of focusing on the next set of results, this fund looks more at where a company will be five years from now. That allows for consideration of longer-term growth, and gives people who invest in this fund the chance to consider where they want to be later instead of only where they are at the present moment.

Fidelity Special Values — The idea of value investing is back in style now, in a way it hasn’t been for some time. Investors are moving out of their previous interest in ‘bond proxies,’ and into areas that are less expensive and more cyclical in nature. With a manager who has a proven track record, this fund can be a great choice for those who want to focus on trust trades at a discount that’s fair and reasonable. That discount is one of the most important aspects of this fund, because people who are focused on the ways they can save money are going to be attracted to trading at a discount. With this particular fund, it’s possible for investors to consider not only how they want to invest but how they want to continue to do that while they save money on trades. That money can then be reinvested, giving them access to a higher level of investment opportunity and stronger growth.

Funds That Promote Strength and Growth

Baillie Gifford Global Discovery — This fund has been called both volatile and exciting, with 30 percent of its investment in technology and 30 percent of its investment in healthcare. Long-term investors can see a lot of value in this fund, but those who are focused on making money in the short-term might want to steer clear of it. That’s because it could cause them to lose a lot of money if they aren’t in it for the long haul, since both healthcare and technology can see significant highs and lows — especially in the shorter term. When it comes to being successful with a fund like this, investing for the long-term and making a commitment to leaving that investment to grow and develop even in times where it seems to be underperforming will be necessary. This isn’t a fund for the faint of heart or for those who want immediate returns at a high level.

Marlborough Nano Cap — Managed by a seasoned stock picker, this fund is one of the best when it comes to teams that invest in smaller UK companies. The portfolio is nimble and small, and that gives adventurous investors an opportunity to get involved in a niche area of the market that can provide them with a high level of quality and value for their investment dollars. While they might not be able to see the kind of strength that a larger-company fund would provide, having the adventurous opportunities of the smaller-company fund can be highly valuable to any investor who wants to do something more unique with their funds. While this probably wouldn’t be a good choice as the only fund or investment, it’s a great option as part of a portfolio and can allow for an investor who’s focused on more unique or niche options for at least some of their investment dollars.

Global Funds for Dedicated Investors

Fidelity Global Dividend — This core global income fund is focused on paying a regular income that continues to grow, all while preserving capital, as well. The fund doesn’t have any constraints, so it can invest wherever it wants to. It may avoid some sectors or countries if they aren’t doing well, in order to make sure it gives the highest and best of its efforts to the investors who are commited to it. Before stocks go into the portfolio they’ll be established at paying dividends, which reduces the risks that the investors will have to face. Borrowing levels are low for the companies that are included, as well, so debt repayment won’t affect their earning levels as strongly. Their stability and dividend payout will be stronger, and that’s one of the main reasons why so many investors like them and want to choose them for their investment portfolios.

Artemis Global Growth — Growth at a rate that’s reasonable is the goal for this fund, and with the software and data compilation used here it’s easier to create that growth without causing unneeded risk. They use an in-house model that ranks a number of companies, in order to decide which of those companies are going to provide the highest level of value for investors who are focused on growth and long-term gains, along with income now and a diverse portfolio through a company they can trust. Overweighting in emerging markets has long been a problem for this fund, but being aware of that can help investors compensate for any issues that could cause for them. By being able to avoid the issue, this fund is the right choice for a lot of investors who are focused on making things better for their long-term investment goals.

So, what’s the bottom line for the best funds and investment trusts? There are many different trusts, and a number of funds that can be the right option. “Best” is relative, and it depends on what the investor really wants to see in their investment portfolio. Some investors want to see strong growth for the long-term, while others want to see more income in the present day. There are still others who want a combination of both. Fortunately, there are plenty of investments that have a combination of these options, and with all the choices to consider it’s easier than ever for an investor to create the portfolio that gives them financial security and peace of mind.

--

--

--

Angel investor and Entrepreneur. Blockchain, Crypto, and a little bit of everything in between. London, UK

Love podcasts or audiobooks? Learn on the go with our new app.

Recommended from Medium

Ray Dalio All Weather Portfolio Review, ETFs, & Leverage

all weather portfolio asset allocation

Wealth Is Quiet — 3 Smart Money Habits You Can Learn From The Quietly Wealthy

Debt Management - Ways to Consolidate and Eliminate Unsecured Debt

How to Stick to a Personal Budget

This is why Women Need to Invest now!

Stock Market Forecast 2022 : FLAT IS THE NEW UP

Buy Mutual Equity Funds Online Easily

Book Synopsis: The Psychology of Money by Morgan Housel

Get the Medium app

A button that says 'Download on the App Store', and if clicked it will lead you to the iOS App store
A button that says 'Get it on, Google Play', and if clicked it will lead you to the Google Play store
David Azzato

David Azzato

Angel investor and Entrepreneur. Blockchain, Crypto, and a little bit of everything in between. London, UK

More from Medium

The Bridge to Your Financial Freedom

How To Access Money Inside Your IRA Or 401k Penalty And Tax-Free

Money Goals on my Mind

Stop wasting your money on Lottery tickets!