5 top funds I’d buy today in an ISA

Home   /   5 top funds I’d buy today in an ISA

first_img See all posts by Harvey Jones Image source: Getty Images I would like to receive emails from you about product information and offers from The Fool and its business partners. Each of these emails will provide a link to unsubscribe from future emails. More information about how The Fool collects, stores, and handles personal data is available in its Privacy Statement. Enter Your Email Address Harvey Jones | Friday, 12th March, 2021 As this year’s Stocks and Shares ISA deadline looms, I’m hunting around for top funds to put in my investment portfolio. While writers on the Fool mostly buy individual UK shares, for overseas exposure I prefer to spread my risk with investment funds.It strikes me as a safer way of tapping into trends such as US technology, emerging markets or smaller companies. Here are five top funds that have caught my eye this year.5G is here – and shares of this ‘sleeping giant’ could be a great way for you to potentially profit!According to one leading industry firm, the 5G boom could create a global industry worth US$12.3 TRILLION out of thin air…And if you click here we’ll show you something that could be key to unlocking 5G’s full potential…I find it hard to overlook the UK’s most popular choice, Terry Smith’s £22bn bad boy FundSmith Equity. The fund has returned 125% over five years, and impressively, 28% over the past turbulent year.Stocks and Shares ISA picksSmith invests in a concentrated portfolio of primarily US stocks but with some UK and European exposure. Fundsmith’s top holdings include tech giants such as Microsoft, PayPal Holdings and Facebook, but also old-school stocks such as Estée Lauder, Philip Morris International and Novo Nordisk. This blend helped him survive the recent tech sell-off in better shape than the equally popular Scottish Mortgage Investment Trust.Past performance is no guarantee of future returns and I will check how much exposure I have to the US in the rest of my portfolio before sealing the deal.The pandemic may have started in China, but the country has shrugged off Covid-19 faster than most and is growing again. I would get exposure to the world’s second largest economy through investment trust JPMorgan China Growth & Income. This is one of the top China funds, rising 348% over five years. However, I’m expecting some volatility, as it has plunged 22% in the last month.When the world comes out of lockdown, I reckon top smaller company funds will outpace the wider market. They tend to perform better when sentiment is high, but fall faster during difficult times. Since I’ve planned to hold these funds for at least 15 years, I can accept the added risk.I would add to my existing stake in Marlborough UK Micro Cap Growth. This is up 125% over what has been a difficult five years for the UK economy. Over 12 months, it’s up 48%. It’s a high-risk, high-return fund.These are my top fundsI will soothe my own nerves by balancing it with a broad-based international fund, say, Lindsell Train Global Growth, run by star managers Nick Train and Michael Lindsell. They target a spread of solid names such as Walt Disney, Heineken Holdings and PepsiCo, plus UK blue-chips such as the London Stock Exchange Group, Diageo and Unilever. It has underperformed lately, growing just 2% in six months, but that’s forgivable after delivering 125% over five years.Value stocks are coming back in favour after years when growth held sway, and I would play this theme with Fidelity Special Situations. Although its five-year performance looks poor at 36%, it’s up 26% in the last six months. It would balance out the other top funds listed here, which are largely going for growth. I’m sure you’ll agree that’s quite the statement from Motley Fool Co-Founder Tom Gardner.But since our US analyst team first recommended shares in this unique tech stock back in 2016, the value has soared.What’s more, we firmly believe there’s still plenty of upside in its future. In fact, even throughout the current coronavirus crisis, its performance has been beating Wall St expectations.And right now, we’re giving you a chance to discover exactly what has got our analysts all fired up about this niche industry phenomenon, in our FREE special report, A Top US Share From The Motley Fool. Click here to claim your copy now — and we’ll tell you the name of this Top US Share… free of charge!center_img Our 6 ‘Best Buys Now’ Shares Randi Zuckerberg, a former director of market development and spokeswoman for Facebook and sister to its CEO, Mark Zuckerberg, is a member of The Motley Fool’s board of directors. Harvey Jones has no position in any of the shares mentioned. The Motley Fool UK owns shares of and has recommended Facebook, PayPal Holdings, and Walt Disney. The Motley Fool UK has recommended Diageo, Novo Nordisk, and Unilever and recommends the following options: long January 2022 $75 calls on PayPal Holdings. 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. Simply click below to discover how you can take advantage of this. Renowned stock-picker Mark Rogers and his analyst team at The Motley Fool UK have named 6 shares that they believe UK investors should consider buying NOW.So if you’re looking for more stock ideas to try and best position your portfolio today, then it might be a good day for you. Because we’re offering a full 33% off your first year of membership to our flagship share-tipping service, backed by our ‘no quibbles’ 30-day subscription fee refund guarantee. “This Stock Could Be Like Buying Amazon in 1997” 5 top funds I’d buy today in an ISAlast_img

Leave a Reply

Your email address will not be published. Required fields are marked *

Recent Posts

Recent Comments