The end of the tax year is fast approaching. Investors have less than three weeks to make use of their £20,000 annual ISA allowance before they lose it. If you haven’t used up your full allowance but are hoping to do so before the 5 April deadline, you might consider putting some of your money in investment funds.
But with so many ISA investment funds available, how do you choose which funds to put your money in? One useful strategy is to look at the investment funds that have performed exceptionally well in the recent past. Moneyfacts has revealed the best-performing ISA investment funds for the 12 months to 1 March 2022.
Read on to find out what they are.
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The 5 best-performing ISA investment unit funds
Here’s a closer look at the top five investment unit funds according to Moneyfacts.
1. Guinness Global Energy B Ret USD
The primary goal of Guinness Global Energy B Ret USD is long-term capital growth. The fund invests in the shares of companies involved in the exploration, production and distribution of oil, gas and other energy sources. According to Moneyfacts, a £1,000 investment in the fund 12 months ago would be worth £1,364.82 today.
2. Invesco UK Opportunities (UK) Acc
This is a fund with a goal of achieving long-term capital growth by investing at least 80% of its assets in shares or other equity-related securities. An investment of £1,000 in the fund 12 months ago would now be worth £1,285.74.
3. JPM Natural Resources A Acc
This is a new entrant to the chart of best-performing ISA unit funds. This fund invests in the shares of companies across the world that produce or market commodities. The fund’s main goal is to provide capital growth in the long term. An investment of £1,000 one year ago would currently be worth £1,272.98.
4. Fidelity American Special Situations A Acc
This fund aims to achieve long-term growth through a focused portfolio of companies that primarily operate in the US or have their head offices there. If you had invested £1,000 in the fund 12 months ago, your investment would now be worth £1,246.28.
5. Schroder Income A Acc
The main goal of this fund is to provide a growing income, mainly from UK equities with above-average yields. The stats show that an investment of £1,000 one year ago would now be worth £1,241.85.
The 5 best-performing ISA investment trust funds
When it comes to investment trust funds, here’s a more detailed look at Moneyfacts’ top five.
1. Dunedin Enterprise Investment Trust
This is a fund that invests primarily in private equity investments and seeks to achieve a balance between maximising value for shareholders and returning some cash to them. An investment of £1,000 in the fund 12 months ago would now be worth £1,545.39.
2. Merchants Trust
This is a fund that seeks to provide an above-average level of income and long-term capital growth for investors, primarily by investing in higher-yielding UK companies. If you had invested £1,000 in this fund one year ago, your investment would now be worth £1,316.47.
3. Caledonia Investments
The investment objective of Caledonia Investments is stated as growing the net assets and dividends paid to investors while managing risk to avoid capital loss. An investment of £1,000 one year ago would now be worth £1,314.30.
4. Scottish Investment Trust
The goal of this fund is to provide investors with above-average returns over the long term by investing in a diversified portfolio of international equities and to achieve dividend growth. The value of a £1,000 investment made 12 months ago would now be £1306.27.
5. Blackrock World Mining Trust
This fund aims to provide a diversified investment in mining and metal assets worldwide with the objective of maximising total returns for investors. A £1,000 investment made 12 months ago would now be worth £1291.21.
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How to invest in these funds
Are you interested in investing in any of these top-performing funds? It’s relatively easy to do so with a stocks and shares ISA. The main benefit of a stocks and shares ISA is that you don’t pay tax on any growth in your investments or any dividends your receive.
There are many stocks and shares ISA providers out there, so make sure you compare different options to get the best one for your needs. The Motley Fool has compiled a list of top-rated stocks and shares ISA providers to help you with this.
Just remember that past performance does not indicate future results. While investing in stocks has the potential to deliver better returns than, say, cash savings over the long term, it comes with greater risks. Your investments can go up and down, and you may end up with less than you put in.
Before you put your money into any investment, make sure you research it thoroughly to determine its long-term potential.
Diversifying your portfolio by investing in different types of investments rather than just one can also greatly help to reduce your level of risk.
