Get expert help when choosing funds for your ISA
Important information: The value of investments can go down as well as up, so you may get back less than you invest
It can be easier to find funds for your ISA if you start with our experts’ favourites.
When it comes to choosing funds for this year’s ISA, wouldn’t it be nice to have some help whittling down more than 3,000 options into a short-list of ideas for you to consider? And wouldn’t it be even better if every fund on this short list was one that our experts believe have the most potential.
Make your ISA decisions a little easier
Well, you’re not alone in thinking this. A little while ago, we recognised that many of our customers needed this support. They wanted us to pick out a selection of funds that we really believe in. So we did just that. We asked our fund selection team to come up with a list of their favourite funds.
As a result the Select 50 was born. It’s a collection of the funds that our analysts have the highest conviction in, or to put it simply, their top picks. We have based it on a selection process that we believe can consistently deliver high-quality funds, managed by experienced fund managers, that have the potential to outperform over the long term. Of course, this is not guaranteed.
It’s also easy to find what you’re looking for, as we have grouped the funds into just eight categories including Europe, Japan and Alternatives. Of course, we do have to point out that with any list like this, there will be strong performing funds that aren’t included. So, if you already own a fund that is not on the Select 50, we are not saying you should sell it.
It’s also important to understand that we are not saying you should buy a fund just because it’s on our list – and we’re not giving you a personal recommendation for your situation. As with any funds, you must ensure they are suitable for your own personal circumstances. If you are unsure about the suitability of an investment, you should speak to an authorised financial adviser.
And great prices
Going back to what our customers want, we understand that investment quality is not the only factor that matters when choosing funds. Cost is also important. That’s why we have gone out to our fund providers (including Fidelity, which we treat no differently from any other manager) to negotiate reductions for our customers.
Over half of the funds on Select 50 have these savings. In some cases, we have negotiated cheaper fund manager charges, while in others the fund managers have agreed to give rebates (discounts) on those charges that are paid back into your account quarterly as additional units.
An easy way to access the experts that underpin Select 50.
If you like the sound of Select 50 and want to tap into our experts’ ideas without having to choose a selection of funds yourself, take a look at Fidelity Select 50 Balanced Fund.
It contains a selection of around 30 funds predominantly chosen from Select 50 and its manager, Ayesha Akbar, can hold different types of investments from all over the world. At least 80% of the portfolio (by value) comes from the Select 50. Ayesha is free to make changes whenever she wants, so she can respond to changing conditions and target relatively stable long-term growth – though, of course, there are no guarantees.
Another Select opportunity
Exchange-traded funds (ETFs) are an increasingly popular way to invest, as these low-cost, passively managed funds track the performance of specific markets or certain types of investments. We wanted to help our customers make the most of this opportunity, so we launched Select ETF.
It is based on the same idea as Select 50, with our experts using their skills and knowledge to identify ETFs that they believe have the best chance of delivering on their objectives. These chosen funds are then divided among the same eight categories that Select 50 uses.
We’re here to help
Whether you prefer to choose actively managed funds or ETFs for yourself or opt for a pre-packaged balanced approach, you could potentially make this year’s ISA investment even more rewarding by drawing on our expertise.
Tax treatment depends on individual circumstances and all tax rules may change in the future. The Fidelity Select 50 Balanced Fund invests in overseas markets and so the value of investments can be affected by changes in currency exchange rates. Currency hedging is used to substantially reduce the risk of losses from unfavourable exchange rate movements on holdings in currencies that differ from the dealing currency. Hedging also has the effect of limiting the potential for currency gains to be made.
It also uses financial derivative instruments for investment purposes, which may expose the fund to a higher degree of risk and can cause investments to experience larger than average price fluctuations. There is also a risk that the issuers of bonds may not be able to repay the money they have borrowed or make interest payments. When interest rates rise, bonds may fall in value. Rising interest rates may cause the value of your investment to fall. Investors should note that the views expressed may no longer be current and may have already been acted upon.
Discounts on Select 50 funds could come in the form of a rebate from the fund manager or lower annual management charges (AMC). If you receive a rebate outside of an ISA or Pension (SIPP), any rebates you receive are potentially liable to income tax at your marginal tax rate. This information, Select 50 and Select ETF are not personal recommendations for any particular investment. Equally, if a Select 50 fund or ETF you own is not on either list we're not recommending you sell it. You must ensure that any investment you choose to invest in is suitable for your own personal circumstances. If you are unsure about the suitability of an investment you should speak to an authorised financial adviser.
What you could do next
Start saving in an ISA
Invest in our Stocks and Shares ISA and pay no income or capital gains tax on your returns.
View our experts’ favourite funds
Our experts research thousands of funds a year. Select 50 is a list of their favourites.
Fidelity Select 50 Balanced Fund
For a fund that predominantly invests in funds from across Select 50.
Choose your ISA funds with our expert's help
Tom Stevenson, Investment Director, reveals his four ISA picks for 2020.