What are the best ISA investment funds August 2021? | moneyfacts.co.uk

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Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 13/08/2021

This week, it was reported that Virgin Atlantic Airways is planning to float on the London Stock Exchange as it hopes for a strong return to transatlantic travel. The potential decision to make its debut on the Exchange comes only five months after a £160 million capital injection of cash.
While we wait to see if Virgin Atlantic Airways joins the London Stock Exchange, here is a summary of the best performing investments ISAs in August 2021.


We’ve also rated several ethical investments based on their performance and ethical credentials.

Top ISA unit trust funds

Rank

Fund

Ranking last month

Value of £1,000 lump sum over one year

Value of £1,000 lump sum over five years (rank)

Investment platform

1

Aberforth UK Small Comp Acc

2

£1,839.51

£1,653.84

(185)

Interactive Investor

2

Consistent Opp UT Inc

1

£1,802.35

£1,527.06

(262)

Interactive Investor

3

Schroder UK Small Cos Acc

5

£1,637.19

£2,016.58

(58)

Interactive Investor

4

Aviva Inv UK Smlr Cos SC 1 Acc

3

£1,632.90

£2,105.15 (37)

Interactive Investor

5

Artemis UK Select R Acc

23

£1,611.87

£1,715.24 (151)

Interactive Investor

Source: Lipper/Moneyfacts

Note: The table above is ordered by the best performance 1 August 2021 over the past 12 months. Funds may be available on other platforms not listed, through a stockbroking service or financial adviser. Past performance is no guarantee of future returns.

The best performing ISA unit trust fund in August 2021 was Aberforth UK Small Comp Acc, rising from second position in July with a £1,000 investment 12 months ago now being worth £1839.51, an increase of £134.32. This fund invests in a range of sectors including media, industrial support services, retail, investment banking and industrial engineering. It aims to outperform the Numis Smaller Companies Index (excluding Investment Companies) by investing in a portfolio of small UK quoted companies.
The Consistent Opp UT Inc drops to the second-best performing fund, with a £1,000 investment made 12 months ago being worth £1,802.35. The fund focuses on investments in UK equities and undervalued overseas opportunities and any income is paid bi-annually.
The Schroder UK Small Cos Acc sits in third and Aviva Inv UK Smlr Cos SC 1 Acc is fourth. A £1,000 investment 12 months later being worth £1,637.19 and £1,632.90 respectively. Both funds focus on investments within smaller companies and require a minimum investment of £100.
A new entrant to the best performing unit trust funds is Artemis UK Select R Acc offering a fund size of £1,235 million and paying any income annually. A £1,000 investment made 12 months ago would now be worth £1,611.87. The fund invests in UK companies across a range of sectors with nearly 17% in travel and leisure and nearly 16% in investment banking.
The unit trust funds delivering the best returns on a £1,000 investment over five years were:

  1. Baillie Giff Amer A Acc
  2. L&G Global Tech Index R Acc
  3. AXA Fram Global Tech R Acc
  4. Herald Worldwide A
  5. JH Global Technology A Acc

Top ISA investment trusts

Rank

Fund

Ranking last month

Value of £1,000 lump sum over one year

Value of £1,000 lump sum over five years (rank)

Investment platform

1

Electra Private Equity

1

£2,946.84

£2,093.34 (33)

 

Speak to a financial adviser

2

Chelverton SCmDvTrstPLCOrd25p

2

£2,323.06

£1,583.34 (79)

 

Interactive Investor

3

JPM Smaller Companies IT

3

£1,794.18

£3,049.41 (8)

Interactive Investor

4

Henderson Smaller Cos IT

13

£1,793.78

£2,466.56 (16)

Interactive Investor

5

JPM Mid Cap Inv

12

£1,734.54

£1,875.34 (54)

Interactive Investor

Source: Lipper/Moneyfacts

Note: The table above is ordered by the best performance 1 August 2021 over the past 12 months. Funds may be available on other platforms not listed, through a stockbroking service or financial adviser. Past performance is no guarantee of future returns

 

The best performing ISA investment trusts in August 2021 has seen a few changes but the top 3 have retained their positions. Electra Private Equity retained the number one spot for the fourth consecutive month, with a £1,000 investment made 12-months ago now worth £2,946.84. Investors can buy shares in this fund and hold these within their ISA.
Chelverton SCmDvTrstPLCOrd25p, a new entrant in June 2021 remains in second place this month. A £1,000 investment made with into this company 12 months ago is now worth £2,323.06. A significant increase of £362.12 compared to last month. This trust invests in smaller and mid-sized UK companies traded on the London Stock Exchange or on AIM. It has more than 50% of the fund invested in industrial, consumer cyclical, and financial services sectors.
JPM Smaller Companies IT sits in the third spot, with the trust seeking capital growth from investing in smaller UK companies. A £1,000 investment made 12 months ago would now be worth £1,794.18.
The two new entrants in August 2021 are Henderson Smaller Cos IT and JPM Mid Cap Inv, having risen from 12th and 13th respectively last month. These trusts now sit in fourth and fifth place with a £1,000 investment made 12 months ago now worth £1,793.78 and £1,734.54 respectively. The objective of the Henderson trust is to maximise the total returns for shareholders by investing mainly in smaller companies within the UK whereas the JPM trust focuses on medium-sized businesses in the UK.
The investment trust funds delivering the best returns on a £1,000 investment over five years were:

  1. Scottish Mortgage Investment
  2. Allianz Technology Trust PLC
  3. Pacific Horizon Investment Trust
  4. Edinburgh Worldwide Investment Trust
  5. Montanaro Euro SmCom

 

Should savers open a stocks and shares ISA in 2021?

The rate of inflation has continued to rise reaching 2.5% in June 2021. This means savers still cannot beat inflation when saving into cash savings accounts. Meanwhile the stock market continues to perform strongly, with ethical funds driving returns of 19.87% over the past year, compared to 17.89% for non-ethical funds.


Savers looking for inflation beating returns that also want to benefit from earning interest with no tax to pay (maximum balance of £20,000 per tax year) could consider a stocks and shares ISA. While stocks and shares ISAs usually outperform cash ISAs, returns are not guaranteed, and savers cash is at risk. Past performance is no guarantee of the future.

Featured: stocks and shares ISA providers

Provider

Min monthly investment

Number of funds available

 

Interactive Investor

£25

3,000 plus

Find out more

Barclays Smart Investor

£0

2,000 plus

Find out more

Foresters Friendly Society

£50

1

Find out more

BMO Asset Management

£50

10

Find out more

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Moneyfacts.co.uk has also written some useful investment guides including how to invest money, the best ethical investments, and how to invest in property.

The value of investments can go up as well as down, and investors’ capital is at risk. Management fees have been included in this article, but other fees may apply. Investors should check all fees with their financial adviser, investment platform or provider before making any investment.

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