January saw a strong start to the year for most global markets. The headline UK index, the FTSE 100, rose 6.4% in the month.
In contrast to 2012, where corporate bond funds featured heavily in our popular funds list, investors currently seem comfortable to take more risk in search of higher returns. Asia and other emerging markets featured prominently, with the teams at First State and Newton proving most popular. Both have outstanding records of investing in these regions, with the Newton funds having more of a dividend focus. In our view these funds dovetail well to provide diversified exposure, although it is important that to note that past performance is not an indicator of future performance and emerging markets remains a higher risk area.
Continuing on the dividend theme; equity income funds remain popular, with investors focusing on some of the tried and tested names in the sector. Our own HL MM Income & Growth Trust remains a popular choice for investors seeking a ready-made portfolio of some of the best equity income funds.
Finally the Cazenove UK Smaller Companies, as featured in the December issue of the Investment Times, was the most popular fund for the month. It offers adventurous investors the opportunity to invest in some of the UK's most dynamic companies, although it is higher risk.
This is provided for your interest but is not a guide to how you should invest. The Vantage Stocks & Shares ISA is designed for investors who prefer to make their own investment decisions. It is important to choose investments based on your own investment objectives and your attitude to risk.
Top 10 funds
|Fund||Fund Manager's initial charge||HL saving on initial charge|
|Cazenove UK Smaller Companies||5%||5%|
|First State Asia Pacific Leaders||4%||4%|
|First State Global Emerging Market Leaders||4%||4%|
|HL MM Income & Growth||5%||5%|
|Invesco Perpetual High Income||5%||5%|
|JO Hambro UK Equity Income||5%||5%|
|Marlborough Multi Cap Income||5.25%||5.25%|
|Newton Asian Income||4%||4%|
|Newton Emerging Income||4%||4%|
Open your ISA in less than 5 minutes
You can purchase any of these funds, and over 2,400 others, and save up to 5.5% on initial charges - that's as much as £620 on a full ISA subscription.
Most of our clients open their ISAs with a debit card, either over the telephone or online. We've made the process as simple as possible. If you are happy making your own investment decisions and want to apply for your ISA it should take no more than five minutes. Before you apply please ensure you read our Terms & Conditions and Key Features, and the Key Investor Information Documents for any funds you are considering.
Please remember, all stock market investments can fall in value as well as rise so they should be held for the long term and you could get back less than you invest. Tax rules can change and the value of any tax shelters will depend on your personal circumstances. This article is not personal advice so, if you are unsure about the suitability of an investment, please contact us for advice.
The value of investments can go down in value as well as up, so you could get back less than you invest. It is therefore important that you understand the risks and commitments. This website is not personal advice based on your circumstances. So you can make informed decisions for yourself we aim to provide you with the best information, best service and best prices. If you are unsure about the suitability of an investment please contact us for advice.