What Are The Best ISA Funds In October 2021 | moneyfacts.co.uk

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Derin Clark

Derin Clark

Online Reporter
Published: 18/10/2021

On Friday 15 October the FTSE 100 index finished at its highest level in 19 months, but fell after China reported its 4.9% expansion came in short of expectation. Meanwhile, this week’s UK inflation figures and a flurry of earning updates are expected to have an impact on the markets.

The summaries below show the overall best performing ISA funds in October 2021.

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 1 £1,776.36 £1,567.74
(213)
Speak to a financial adviser
2 Consistent Opp UT Inc 2 £1,742.12 £1,519.25
(252)
Interactive Investor
3 Guinness Global Energy B Ret USD 184 £1,651.16 £764.48
(774)
Interactive Investor
4 ASI UK Unconstrained Eq Acc 3 £1,639.47 £1,357.42 (374) Speak to a financial advisor
5 Artemis UK Select R Acc 5 £1,631.25 £1,652.30 (166) Interactive Investor

Source: Lipper/Moneyfacts
Note: The table above is ordered by the best performance 1 October 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 the future.

 

For the third month running, the best performing ISA unit trust fund in October 2021 is Aberforth UK Small Comp Acc, with a £1,000 investment 12 months ago now being worth £1,776.36. The fund’s objective is to achieve a total return greater than the Numis Smaller Companies Index.

The Consistent Opp UT Inc also retains second position this month, with a £1,000 investment made 12 months ago worth £1,742.12. The fund focuses on investments in UK equities and undervalued overseas opportunities. Any income is paid bi-annually.

Guinness Global Energy B Ret USD rises a staggering 181 spots from last month, slotting into third position, with a £1,000 investment made 12 months ago now worth £1,651.16. This has not, however, been the best option for a five-year investment.

ASI UK Unconstrained Eq Acc falls one spot to fourth and Artemis UK Select R Acc remains in fifth spot, offering a fund size of £1,235 million and paying any income annually, which may be beneficial. A £1,000 investment made 12 months ago in these funds would now be worth £1,639.47 and £1631.25 respectively.

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 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 Electra Private Equity 1 £3,386.30 £1,997.85 (35) Speak to a financial adviser
2 Chelverton SCmDvTrstPLCOrd25p 2 £2,124.22 £1,444.26 (90) Interactive Investor
3 BlackRock Smaller Companies 4 £1,721.44 £2,448.55 (14) Interactive Investor
4 Merchants Trust 11 £1,698.11 £1,654.12 (71) Interactive Investor
5 Temple Bar Investment Trust - £1,682.60 £1,169.27 (103) Interactive Investor

Source: Lipper/Moneyfacts
Note: The table above is ordered by the best performance 1 October 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 the future.

 

The top two performing ISA investment funds in October 2021 have retained their positions from last month, with Electra Private Equity at the number one spot and Chelverton SCmDvTrstPLCOrd25p second, with a £1,000 investment made 12 months ago now worth £3,386.30 and £2,124.22 respectively. Investors choosing Electra can buy shares in this fund and hold these within their ISA.

BlackRock Smaller Companies, a new entrant in September, has risen in third spot, with a £1,000 investment made 12 months ago now being worth £1,721.44. To achieve its objective, the fund invests mainly in UK smaller companies, with overseas listings that have a secondary UK quotation also being invested in.

A new entrant in October is Merchants Trust, which invests in a portfolio of mainly higher yielding large UK companies and by using appropriate gearing to enhance return. The value of an investment made 12 months ago would be £1,698.11.

In fifth position is another new entrant in Temple Bar Investment Trust, with an investment made 12 months ago now being worth £1,682.60. The policy of the company is to invest in a broad spread of securities, mostly from the FTSE 350 index.

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

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

Should savers open a stocks and shares ISA in 2021?

Although the inflation figures for September have not been released yet, many finance experts are predicting that inflation will continue to rise over the coming months. The highest fixed rate bond currently stands at 2.00% AER, which means that unless inflation sees a significant fall, no savings account can beat the rate of inflation, which stood at 3.2% during August. Savers who are happy to accept some risk may want to consider investing in stocks and shares instead. A stocks and shares ISA can be a good investment option as investors do not need to pay tax on the returns generated (up to a maximum deposit of £20,000 each tax year). Investment in stocks and shares has outperformed cash savings over the longer term, but the downside of these investments is that the value of these can change over time as markets rise and fall, and investors’ capital is at risk.

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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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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