What are the best ISA investment funds October 2020? | moneyfacts.co.uk

Michelle Monck

Michelle Monck

Consumer Finance Expert
Published: 27/10/2020

In October 2020 there have been a few changes to the best performing investment ISAs. Baillie Gifford now has three of the top five performing unit trust funds over a 12-month period marking a switch away from the dominance funds in the mining sectors had a couple of months ago.


The Edinburgh Worldwide Investment Trust has entered the top five performing unit trust funds this month moving from eighth position to the fifth best fund for returns over a 12-month period.


We have summarised below the top five performing ISA investment funds for a £1,000 investment over the past 12 months and five years.

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

Investment platform

1

Baillie Gifford American A Account

1

£1,989.63

£4,537.10

Interactive Investor

Fidelity

2

Baillie Gifford Global Discovery A Account

7

£1,584.02

£3,107.69

Interactive Investor

3

LF Ruffer Gold Account

2

£1,560.07

£3,965.79

Interactive Investor

Fidelity

4

Premier Monthly Income Class C Income

N/A

£1,520.86

£1,840.74

Interactive Investor

5

Baillie Gifford European A Account

8

£1,446.01

£2,404.16

Interactive Investor

Source: Lipper/Moneyfacts
Note: The table above is ordered by the best performance 1 October 2020 over the past 12 months. Funds may be available on other platforms not listed, through a stockbroking service or financial adviser.

The top five-unit trust funds in October have seen three funds leave the top five since last month. The L&G Global Tech Index R Account, Invesco Global Focus UK Account and Baillie Gifford Pacific A Account have all dropped out of the top five.


The latest investment ISA chart in October sees the Baillie Gifford American A Account retaining the best return in October 2020, generating £1,989.63 on a £1,000 investment over 12-months. This fund currently has the largest share of its investments in the consumer, information technology and healthcare sectors.
The Baillie Gifford Global Discovery A Account has moved from seventh place to second this week, with a 12-month investment of £1,000 worth £1,584.02. This fund has Douglas Brodie as its fund manager and it includes investments in Tesla Inc and Ocado Group, with more than 65% of investments made in US.
The LF Ruffer Gold Account has dropped again this month and is now in third place based on its latest 12-month returns.


The Premier Monthly Income Class C Income has risen from outside the top 100 funds with the best return over 12 months, to take fourth place on the chart this month. This fund has nearly 12% of its investments in the life insurance sector, followed by investment and banking at 8% and tobacco at 7%.


The Baillie Gifford European A Account has generated £1,446.01 over 12-months on a £1,000 investment this month. This fund has nearly 13% of its investments in the software and computer sciences sector, with retailers, personal goods and consumer services following at 9%, 8% and 6% respectively.


The unit trust funds delivering the best returns on a £1,000 investment over five years were:

  1. Baillie Gifford American A Account
  2. LF Ruffer Gold Account
  3. Ninety One Global Gold A Account G
  4. L&G Global Tech Index R Account
  5. AXA Framlington Global Technology

Top ISA investment 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

Investment platform

1

Scottish Mortgage Investment

1

£1,978.41

£4,267.18

Interactive Investor

Fidelity

2

Biotech Growth Trust

4

£1,942.69

£2,118.75

Interactive Investor

Fidelity

3

Pacific Horizon Investment Trust

3

£1,849.60

£3,589.87

Interactive Investor

Fidelity

 

4

JP Morgan China

2

£1,826.45

£3,902.38

Interactive Investor

Fidelity

5

Edinburgh Worldwide Investment Trust

8

£1,586.96

£3,393.38

Interactive Investor

Source: Lipper/Moneyfacts
Note: The table above is ordered by the best performance 1 October 2020 over the past 12 months. Funds may be available on other platforms not listed, through a stockbroking service or financial adviser.

The very top investment ISA trust fund in October 2020 remains the same this month, with The Scottish Mortgage Investment fund delivering the best return over 12-months for two consecutive months. This fund achieved £1,978.41 on a 12-month investment of £1,000 up to 1 October 2020. This investment trust can invest in a wide range of sectors and countries.


The Biotech Growth Trust has risen from position four to two on our chart this month. This fund invests in global shares and securities in biotechnology companies and has generated £1,942.69 on a £1,000 investment over the past 12-months.


The Pacific Horizon Investment Trust has stayed in third place. A £1,000 investment made 12-months into this fund would now be worth £1,849.60. This fund invests in Asia-Pacific (excluding Japan) and the Indian subcontinent.


JP Morgan China has dropped two places on the top ISA trust fund chart, in October this fund would achieve £1,773.02 on a £1,000 investment made 12-months ago. This fund invests in companies listed on the Hong Kong stock exchange and unlisted companies in China. It also has a maximum of 15% of its assets in UK-listed companies.


The Baillie Gifford European Growth Trust Plc has dropped out of the top five this month with Edinburgh Worldwide Investment Trust taking its place this month. This fund has moved up from eighth place last month to fifth in the chart based on returns over 12-months. This fund currently invests in Tesla, Ocado Group and Wayfair and 60% of its investments in US companies, followed by the UK at 12%.

The investment trust funds delivering the best returns on a £1,000 investment over five years were:

  1. Allianz Technology Trust Plc
  2. Scottish Mortgage Investment
  3. Polar Capital Investment Trust
  4. Pacific Horizon Investment Trust
  5. JP Morgan China

Investment ideas

Those wanting to invest in stocks and shares ISAs can do this either by using an investment platform, such as Interactive Investor or with an ISA provider that manages the funds on their behalf. Examples ISA providers include BMO or Healthy Investment who offer managed stocks and shares ISAs where their fund managers make decisions about the investment decisions in the fund.


Structured deposits are a form of investment that tracks against a market index such as the FTSE 100, they offer protection for your capital unlike other investments in the stock market where this can be at risk if the market fails to perform. Structured deposits can be available as an ISA and therefore offer a tax efficient way to save.


Ethical investments are investment funds that have rules and guidelines about the ethical standards of the companies they invest with.

Find out more about how to invest your money in our guide, you can also read more about how to invest in property and invest in gold.

 

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.

Disclaimer

Information is correct as of the date of publication (shown at the top of this article). Any products featured may be withdrawn by their provider or changed at any time.

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