Are Investment ISA’s worth it?

Enables IFA’s are great believers in passive investment and very keen to make sure you have the right risk assessment for you and your investments in place. But it is interesting to note that some investors who bought the right funds at the turn of the millennium will have at least quadrupled their money through ISA’s despite buying at the worst possible time ie the peak of the dotcom bubble say the Telegraph Money.

They recently pulled together a list of the best Isa funds since the start of 2000, a 15-year period that has seen the London stock market have some real ups and downs. Calculations by Hargreaves Lansdown, the fund shop, say that “an investor who put £10,000 into a fund that tracks the FTSE 100 index 15 years ago and reinvested the dividends would now have £15,213. But investors who put their money in one of the best-performing funds would have outstripped inflation and fared much better.”

These were the top 10 funds:
Fund name     Return since 2000
Marlborough Special Situations     580pc
First State Asia Pacific     536pc
Investec UK Smaller Companies     460pc
Invesco PRC [People's Republic of China] Equity     447pc
Aberforth UK Small Companies     445pc
First State Global Emerging Markets     411pc
Schroder US Smaller Companies     381pc
Aberdeen Emerging Markets Equity     380pc
Schroder Recovery     370pc
Jupiter Financial Opportunities     359pc

Marlborough Special Situations fund, managed by Giles Hargreave returned 580pc, according to FE Trustnet, turning a £10,000 lump sum into £68,000. Rob Gleeson, head of fund research at FE Trustnet, said it was no coincidence that the best performers were the funds that invested in the more “risky areas” - “Investors should only take as much risk as is appropriate for their objectives, but you can see from this data that the highest risk asset classes perform best over the long term.” What ever your approach to risk Enable's IFA’s in Bishop’s Stortford are here to help you talk through your investment options.

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