The 25 best funds for your Isa – picked by our experts
The Telegraph 25: Our annual list of investments to grow, protect and diversify your wealth
James Baxter-Derrington
James is Investment Editor at The Telegraph.
Every year, Telegraph Money identifies its favourite investment funds – read on to see which ones have made the cut this time.
Markets are complicated beasts and the past few years have only proved that theory. Rumours of recessions and bubbles abound, while governments twist themselves in knots in pursuit of growth. Wars, tariffs and myriad unknown risks continue to crop up, and it seems more difficult than ever for investors to build a long-term view of the world.
Inflation and higher interest rates were seemingly tamed, but now threaten to return because of a combination of international strife and domestic mistakes.
There are professionally managed funds to arm yourself against such difficulties, but the wide range on offer can make choosing one a daunting prospect.
Enter Telegraph 25, a list of our favourite investment funds. It is a mixture of those that we believe will grow your money in the long run, some that provide income, others with strategies that will protect your savings when markets fall, and ones we think offer an exciting opportunity.
We aim to choose funds that can stand the test of time. Even with so much uncertainty right now, these funds should do what we need them to.
As ever, investors must remember that this list is not an off-the-peg portfolio to pump your money into and forget about. DIY investing requires you to understand the risks you are taking and conduct your own research to ensure that an investment fits your needs and blends with others that you already hold.
Neither do we recommend buying all the funds on the list at the same time. The funds and their aims must be considered and match the aims and objectives of the investor.
Some funds on the list have been chosen expressly because they can be relied on to do several jobs well without the need for close monitoring. Others, however, take more risk by design.
When buying open-ended funds, investors must also consider whether they seek income or accumulation shares. Income will pay out any dividend directly to your account, whereas accumulation will automatically reinvest these payouts.
The Telegraph 25 is designed to highlight investments that are the best in the field they operate in and that we believe will give the best returns for the risk being taken. Unless we make clear to the contrary, they are intended for long-term investors who want a home for their money for five, 10 or even 20 years.
We have divided the list into five sections: British funds, world funds, income funds, wealth preservers, and wild cards.
How much you will pay your Isa manager
Investing is for the long-term, and we take that seriously at Telegraph Money. Long-standing readers will recognise the vast majority of names on this list. We don’t take the decision to replace a fund lightly, and one difficult year won’t be enough to end our conviction. However, if a better opportunity is out there, we won’t ignore it. Keep your eyes peeled for several additions scattered throughout.
1. iShares UK Equity Index
An investment in the domestic economy should be a core consideration for any investor and there is no simpler way to own it all than with a passive fund. To access the UK markets, this price remains hard to beat.
Charge: 0.05pc | Cheapest share class: S | Five-year return: 79.1pc
2. TM Redwheel UK Equity Income
Value investing has not been so popular during the “magnificent seven” era but managers Ian Lance and Nick Purves’s portfolio of British stocks, including BP, ITV and Marks & Spencer, is a good option for those seeking reliable dividends.
Charge: 0.57pc | Cheapest share class: L | Five-year return: 91pc
3. Schroder UK Mid Cap
With a more specific mandate than wider funds, this trust aims to deliver a total return in excess of the FTSE 250 (excluding trusts) and, over various time frames, it has achieved its goal. This fund is a new addition to our list. Offering 27.6pc last year, and more than 130pc in 10 years, it continues to outshine its benchmark – even if it’s slightly pricey.
Charge: 0.92pc | Ticker: SCP | Five-year return: 40.1pc
4. Fidelity Special Values
With benchmark-smashing returns yet again in 2025, Alex Wright, its manager, continues to shake off previous difficult years. Over both five and 10 years, the trust has far outstripped the wider market. As markets continue to scare easily, value investing offers a great opportunity, and this trust features underpriced gems.
Charge: 0.68pc | Ticker: FSV | Five-year return: 96.6pc
5. Marlborough UK Micro-Cap Growth
It has been a tricky few years for this fund as successive managers have tried to wrestle with both the portfolio and the distinctly harsh atmosphere for the UK’s smallest companies. We have stuck with it through the bad and it appears our faith has paid off as performance continues to climb.
Charge: 0.79pc | Cheapest share class: P | Five-year return: -2.6pc
6. Legal & General International Index Trust
Invest in more than 2,000 companies around the world for a minimal price tag. Consider this at the heart of any portfolio.
Charge: 0.13pc | Cheapest share class: C | Five-year return: 79pc
7. Scottish Mortgage Investment Trust
Baillie Gifford’s flagship fund had a tough few years as interest rates rose, but it offers exposure to a concentrated portfolio of high-growth stocks, including Elon Musk’s SpaceX and Nvidia.
Charge: 0.31pc | Ticker: SMT | Five-year return: 12.7pc
8. Orbis Global Balanced
This multi-asset fund stands out for its unique fee structure. Investors only pay if the fund outperforms its benchmark; if it underperforms, they get refunded. This should mean the management team is highly motivated to deliver superior returns. Alec Cutler, the fund’s manager, takes a contrarian approach and prides himself on finding overlooked opportunities.
Charge: 0pc base fee with refundable performance fee of 40pc of out-performance refundable at 40pc for under-performance | Cheapest share class: Standard | Five-year return: 126.2pc
9. JP Morgan American Investment Trust
Although this trust had a tough year, it still managed double-digit returns – and over 10 years has shone brightly, with a 349pc return. This blend of value and growth investing offers diversification without sacrificing performance, and should also defend when markets turn.
Charge: 0.35pc | Ticker: JAM | Five-year return: 104.6pc
10. JP Morgan Emerging Markets Growth & Income Investment Trust
This is another fund that has proved it is worth sticking with, and the experience of Austin Forey continues to right the ship in yet another tough year. We will continue to monitor performance but keep the faith in this £1.4bn trust.
Charge: 0.79pc | Ticker: JMGI | Five-year return: 16.9pc
11. iShares Core S&P 500 Ucits ETF
Rounding out the trinity of core holdings, any investor must consider owning the S&P 500 as cheaply as possible. Consider this to complement your UK and global tracker funds.
Charge: 0.07pc | Ticker: CSPX | Five-year return: 91.5pc
12. The Global Smaller Companies Trust
Since appointing Nish Patel as manager, the Global Smaller Companies Trust has continued to justify its 137-year existence. It is one to continue monitoring but it has happily maintained performance against comparable funds investing in the same space.
Charge: 0.74pc | Ticker: GSCT | Five-year return: 37.2pc
13. Liontrust European Dynamic
This £2.3bn fund, which is a new addition to our list, has a concentrated holding of 31 companies ranging from Deutsche Bank to Ryanair, and has outperformed an already impressive European market in recent years. Managers James Inglis-Jones and Samantha Gleave continue to impress with top-quartile performance over every period.
Charge: 0.84pc | Cheapest share class: I | Five-year return: 100.6pc
14. TR Property Investment Trust
For investors who want a stake in property, this trust is an excellent starting point. The company is invested in a combination of direct holdings in bricks and mortar and UK and international property shares. With a 4.7pc yield and an attractive 11pc discount at the time of writing, it remains worth consideration.
Charge: 0.78pc | Ticker: TRY | Five-year return: 14.3pc
15. Artemis Income
This stalwart fund has had a tough year, but with top-quartile performance over three, five and 10 years, Artemis Income remains a strong option for both income and capital growth.
Charge: 0.8pc | Cheapest share class: I | Five-year return: 83pc
16. Guinness Asian Equity Income
For those looking for geographic diversification, Guinness Asian Equity Income offers a high-conviction approach to dividend-paying companies in the Asia-Pacific region.
Charge: 0.77pc | Cheapest share class: Y | Five-year return: 46pc
17. Invesco Monthly Income Plus
A 5.53pc income yield paid monthly, combined with impressive capital growth, secures this fund’s place on the list for yet another year.
Charge: 0.67pc | Cheapest share class: Z | Five-year return: 23.3pc
18. Schroder Income
Despite losing two managers in the same year, Schroder Income maintains a strong team – including a founding member of the firm’s Global Value team. With this and a solid track record in mind, we’re happy to keep the faith for now. The fund mainly invests in above-average yielding equities in order to beat the FTSE All-Share, and we will monitor its future performance.
Charge: 0.81pc | Cheapest share class: L | Five-year return: 94.9pc
19. City of London Investment Trust
King of the dividend heroes, this trust has raised its payout for 59 years and counting. Holding a stable of famous yielders and with a strong reputation, it is one of the few trusts to command a (small) premium.
Charge: 0.36pc | Ticker: CTY | Five-year return: 95.7pc
20. Personal Assets Trust
There are very few periods of discrete performance in recent years where this trust dips into the red. Beyond protecting your wealth from erosion, capital growth has also been impressive. For those seeking a smoother ride, it is worth knowing.
Charge: 0.67pc | Ticker: PNL | Five-year return: 33.4pc
21. Vanguard LifeStrategy
A favourite of financial advisers. One of the cheapest and simplest options for those who do not have the time or inclination to think about investing. Each of the five portfolios offers a different exposure to shares, from 20pc to 100pc, with the remaining chunk held in bonds. Invested across Vanguard tracker funds, managing risk has rarely been so easy to understand.
Charge: 0.2pc | Cheapest share class: A | Five-year return: 39.3pc (60pc shares)
22. Ruffer Investment Company
The first port of call for an investor seeking to diversify, there is a reason Ruffer holds its reputation. This fund remains the essential holding for investors who want something to rise when everything falls.
Charge: 1.07pc | Ticker: RICA | Five-year return: 18.9pc
23. M&G Japan
After decades in the cold, it seems Japan may have finally risen again. Since clawing its way back to its 1989 peak just a couple of years ago, the Nikkei 225 has risen a further 40pc – and with new regulation on the horizon to force companies to start spending their large cash reserves, there’s plenty of room to run. A top-quartile performer over one, three and five years, this fund is worth considering, and is a new arrival on our 2026 list.
Charge: 0.47pc | Cheapest share class: I | Five-year return: 90.1pc
24. Polar Capital Biotechnology
This fund invests in biotechnology, pharmaceutical and life sciences firms from around the world. David Pinniger, its manager, has delivered outperformance against the very strong Nasdaq Biotechnology Index every year over the past decade.
Charge: 1.1pc | Cheapest share class: S | Five-year return: 77.6pc
25. Fidelity China Special Situations
Another Telegraph 25 staple, Dale Nicholls’ offering is a standout performer, even if the investment case for China is more uncertain than it once was. While the five-year performance figure looks bleak for this trust, this is a result of unfortunate timing more than anything else. Five years ago Chinese markets reached an all-time high, before regulatory pressures and the AI boom in the US sucked the wind out of its sails. Even so, this industry darling weathered the storm better than most – and with a 40pc return over 2025 and a near 200pc return in 10 years, we’ll stick with this wild card.
Charge: 0.89pc | Ticker: FCSS | Five-year return: -22.6pc
Leave a Reply