112 funds that financial experts are backing for success
Concerns about tax rises and pension and ISA reform may prompt investors to put as much money away as possible in the build up to the Autumn Budget – but where are the best places to stash your cash?
Chancellor Rachel Reeves is rumoured to be considered reforms to ISAs that could restrict the cash ISA allowance, as well potential restrictions on pension tax relief as part of plans to balance the nation’s finances in her latest fiscal update.
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But it is important to put your money into reliable investments that have the best chance of delivering a decent return, even if you can’t guarantee market performance.
Wealth manager Evelyn Partners – the parent firm behind Bestinvest, has compiled a Best Funds List based on the selection process used in its client portfolios, which are worth £64.6 billion.
Finding value in UK equities
The UK stock market may not post the same top returns compared with somewhere like the US, but the FTSE 100 has hit record highs in recent months and there are plenty of companies offering attractive dividends.
Evelyn Partners says the UK market offers opportunities for value-oriented investors, with a strong tilt towards value and defensive sectors, including financials, energy and healthcare.
The report said: “While the UK lacks the big tech giants listed in the US, other major sectors in the UK, such as financials and defence companies, are thriving. Share buybacks are prevalent, particularly among FTSE 350 companies. Major companies conducting buybacks this year include Shell, GSK, HSBC and Unilever, to name but a few.”
Investors can access these sorts of companies through funds such as Artemis UK Select
Fidelity Special Situations, Temple Bar Investment Trust and the iShares Core FTSE 100 UCITS ETF.
UK All Companies
Artemis UK Select
Fidelity Index UK
Fidelity Special Situations
IFSL Evenlode Income
JPM UK Equity Core
Liontrust UK Growth
Montanaro UK Income
Premier Miton UK Growth
Royal London Sustainable Leaders Trust
UK Smaller Companies
L&G UK Mid Cap Index
RGI UK Listed Smaller Companies
WS Gresham House UK Smaller Companies
UK Equity Income
BlackRock UK Income
Redwheel UK Value
TM Redwheel UK Equity Income
Trojan Ethical Income
Healthy European equities
Similar to the UK, Europe is facing various economic and political challenges, but European equities actually outperformed their US counterparts in the early part of the year, according to Evelyn Partners.
The wealth manager said: “Germany’s substantial increases in defence and infrastructure spending are expected to provide economic stimulus. However, political uncertainty in France continues.
“Despite varying economic conditions, Europe remains home to a diverse universe of best-in-class companies. From world-renowned healthcare firms to luxury goods and industrial leaders, the region offers a wealth of opportunities for skilled fund managers.”
Two of the best funds to access the continent include Blackrock European Dynamic and Liontrust European Dynamic, according to Evelyn Partners.
Europe excluding UK
BlackRock Continental European Income
BlackRock European Dynamic
Fidelity European
HSBC European Index
Liontrust European Dynamic
Making American stocks great again
US stocks have dominated financial markets in recent years, with the Magnificent 7 technology firms driving investor interest.
But there have been concerns that valuations across US equities appear stretched when compared with historical averages, prompting a more cautious outlook among investors.
There are also concerns about the slowing jobs market and the potential impact of Trump tariffs on consumer prices. These factors could weigh on economic momentum and investor sentiment. However, Evelyn Partners said the US is a resilient market that could further benefit from deregulation, tax cuts, and positive company earnings.
North America
Brown Advisory US Sustainable Growth
Dodge & Cox Worldwide US Stock
Edgewood L Select US Select Growth
GQG Partners US Equity
L&G S&P 500 US Equal Weight Index
L&G US Index Trust
Premier Miton US Opportunities
TM Natixis Loomis Sayles US Equity Leaders
North America Smaller Companies
Federated Hermes US SMID Equity
Navigating emerging markets
Emerging markets can be challenging to navigate, particularly in Asia where countries face varying economic outlooks, said Evelyn Partners.
India and China are facing trade tensions with the US, while smaller countries in the region may be where the best growth is, albeit with more risk.
M&G Asian is one way of putting your money into the region as is Ashoka WhiteOak Emerging Markets Equity, which aims to back high-quality businesses at attractive valuations.
Asia Pacific excluding Japan
Federated Hermes Asia ex-Japan Equity
Jupiter Asian Income
Schroder Asian Income
Schroder ISF Asian Total Return
Global Emerging Markets
Ashoka Whiteoak Emerging Markets
Equity Fidelity Index Emerging Markets
TM Redwheel Global Emerging Markets
Vanguard Emerging Markets Stock Index
Going Japanese
Japanese equities present “valuation diversification,” according to Evelyn Partners, with its stocks often trading at lower price-to-earnings (P/E) ratios than their US counterparts.
The report said: “This creates potential value opportunities for investors. Furthermore, corporate governance reforms have led to improved capital efficiency and stronger shareholder returns, with companies increasingly engaging in stock buybacks and dividend payouts.”
Investors can access world-leading industries, particularly in electronics and automotive manufacturing through funds such as M&G Japan and the JPMorgan Japanese Investment Trust.
Japan
iShares Japan Equity Index (UK)
JPM Japan M&G Japan
Going global
A global equity fund can give you access to the best regions and companies in one portfolio, providing a diverse mix of industries and geographies.
Evelyn Partners said: “By investing across regions and sectors, these funds can help mitigate risk and improve long-term stability – making them a valuable tool for building balanced portfolios.”
The report recommends Loomis Sayles Global Growth Equity and Fidelity Index World.
Global
Baillie Gifford Global Discovery
Brown Advisory Global Leaders
Brown Advisory Global Leaders Sustainable
Fidelity Index World
Fiera Atlas Global Companies
Fundsmith Equity
Fundsmith Stewardship
GuardCap Global Equity
Loomis Sayles Global Growth Equity
Schroder Global Sustainable Value Equity
UBS FTSE RAFI Developed 1000 Index
Vanguard FTSE Dev World ex-UK Equity Index
Vanguard Global Small-Cap Index
Global Equity Income
Baillie Gifford Responsible Global Equity Income
Fidelity Global Dividend
Guinness Global Equity Income
IFSL Evenlode Global Income
Finding fixed income
Economic uncertainty is making fixed income attractive and current bond yields are offering an attractive entry point for investors seeking to lock in relatively predictable returns, according to Evelyn Partners.
The wealth manager said: “With yields elevated across various fixed income instruments, this environment presents an opportunity to consider bonds for both defensive and income-generating portfolios. UK Gilts continue to look appealing – especially with the potential of future interest rate cuts from the Bank of England, should inflation remain under control.
It suggests the Invesco Tactical Bond and iShares Core UK Gilts UCITS ETF to get exposure to fixed income.
UK Gilts
Vanguard UK Government Bond Index
£ Global Corporate Bonds
Aegon Global Short Dated Climate Transition
Global Mixed Bonds
Vanguard Global Short-Term Bond Index
£ Corporate Bonds
Artemis Corporate Bond
Premier Miton Corporate Bond Monthly Income
TwentyFour Corporate Bond
Vontobel Fund TwentyFour Sustainable Short Term
Bond Income
Vontobel TwentyFour Absolute Return Credit
£ Strategic Bonds
Invesco Tactical Bond (UK)
M&G UK Inflation Linked Corporate Bond
MI TwentyFour AM Dynamic Bond
USD Government Bonds
Vanguard US Government Bond Index
Going for gold
Gold has hit record highs again in recent weeks, reflecting the economic and geopolitical uncertainty.
Alongside gold, infrastructure-focused funds are gaining traction as long-term investment opportunities, Evelyn Partners said.
It recommends Invesco Physical Gold and Lazard Global Listed Infrastructure Equity.
Specialist
BlackRock Gold & General
Guinness Sustainable Energy
Lazard Global Listed Infrastructure Equity
M&G Positive Impact
Ninety One Global Environment
Targeted Absolute Return
Atlantic House Defined Returns
TM Fulcrum Diversified Absolute Return
Graham Macro
Lazard Rathmore Alternative
Ninety One Diversified Income
Flexible Investment
Trojan Fund
Property
Premier Miton Pan European Property Share
Short Term Money Market
Goldman Sachs Sterling Liquid Reserves
Exchange traded funds
Amundi US TIPS Government Inflation-Linked
Bond ETF
Invesco FTSE RAFI US 1000 ETF
Invesco Physical Gold ETC
iShares $ Treasury Bond 3-7y ETF
iShares $ Treasury Bond 7-10y ETF
iShares £ Ultrashort Bond ETF
iShares Core FTSE 100 ETF
iShares Core MSCI Japan IMI ETF
iShares Core UK Gilts ETF
iShares MSCI USA Screened ETF
iShares MSCI World Energy Sector ETF
iShares UK Property ETF
SPDR Bloomberg Sterling Corporate Bond ETF
SPDR MSCI All Country World ETF
SPDR MSCI World Technology ETF
SPDR S&P 500 ETF
JMP UK Equity Core UCITS ETF
Vanguard FTSE 250 ETF
Vanguard FTSE All-World UCITS ETF
Vanguard S&P 500 ETF
Xtrackers MSCI World Communication Services ETF
Xtrackers MSCI World Consumer Discretionary ETF
Xtrackers MSCI World ex USA ETF
Xtrackers MSCI World Financials ETF
Xtrackers MSCI World Health Care ETF
Xtrackers MSCI World Industrials ETF
Xtrackers MSCI World Momentum ETF
Xtrackers MSCI World Quality ETF
Xtrackers S&P 500 Equal Weight ETF
Investment trusts
Asia Pacific Excluding Japan
Schroder Asian Total Return Inv. Company
Schroder Oriental Income
Europe Excluding UK
Fidelity European Trust
Global
Alliance Witan
Monks
Personal Assets Trust
RIT Capital Partners
Global Emerging Markets
Templeton Emerging Markets Investment Trust
Global Equity Income
JPMorgan Global Growth & Income IT
Japan
JPMorgan Japanese Investment Trust PLC
Property
LondonMetric Property PLC
Picton Property Income Ltd
TR Property
Specialist
3i Infrastructure
Allianz Technology Trust
HarbourVest Global Private Equity
HgCapital Trust
Impax Environmental Markets
International Public Partnerships Ltd
NB Private Equity Partners Ltd
Pantheon International
UK All Companies
Fidelity Special Values Plc
Finsbury Growth & Income
Mercantile IT
Temple Bar
UK Smaller Companies
Aberforth Smaller Companies Trust
Henderson Smaller Companies
Jason Hollands, managing director of Bestinvest, said: “As speculation mounts over potential changes to the way pensions, savings and investments are taxed, we anticipate that many investors will once again choose to utilise their tax-free ISA and pensions allowances ahead of the Budget, as they did last year.
“But once an ISA is funded, it is vital to choose the right investments to meet desired savings goals, risk tolerance and time horizons and which will fit alongside existing holdings.
“This can be a daunting process, even for the most seasoned investors given the breadth of choice. That’s where our Best Funds List comes in – offering a curated selection of funds that our research team believe stand out in their respective categories.”
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