Tax year end – HL’s Kate Marshall shares 3 ISA fund ideas

With the tax year end just a few weeks away, Kate Marshall, lead investment analyst, Hargreaves Lansdown, has shared three fund ideas she believes offer merit in different ISA portfolio scenarios.

Marshall says: “The countdown is on – as we draw closer to the end of the tax year on 5 April, investors are reminded not to miss out and make the most of ISA allowances. ” 

Sharing her fund ideas for an ISA, Marshall identifies the following:

Troy Trojan

Total return funds are more conservative than funds that invest fully in company shares. They normally invest in a mix of investments including shares, bonds, commodities and currencies. They could help provide modest growth for an investment portfolio over the long term, and help shelter money when stock markets fall, but are unlikely to keep up with stock markets when they rise quickly.

This fund invests in a mix of inflation-linked bonds, gold, currencies and shares, which includes some of the world’s best-known companies with highly recognisable brands.

We think the fund could form the foundation of a broad investment portfolio, has the potential to bring some stability to a more adventurous portfolio, or provide some long-term growth potential to a more conservative portfolio.

Legal & General Future World ESG Tilted and Optimised Developed Index

Global equity funds provide a good foundation to an investment portfolio focused on long-term growth. Investing in companies across the globe provides a good level of diversification in a single fund. This one provides broad exposure to a range of large and medium-sized companies in developed markets, such as the US, Japan and Europe, while being mindful of environmental, social and governance (ESG) issues. Responsible investment funds give you the chance to make money in a way that’s in line with your principles.

This fund aims to track the performance of the Solactive L&G ESG Developed Markets Index. It won’t invest in tobacco companies, pure coal producers, manufacturers of armaments or persistent violators of the UN Global Compact Principles.

An index tracker fund is one of the simplest ways to invest, and this one could be a good addition to a broader investment portfolio aiming to deliver long-term growth in a responsible way.

FSSA Asia Focus

Over the years, rapid industrialisation, growing populations, and a desire to succeed have helped transform countries in the Asia region. Domestic consumption is set to be a key driver of growth over the coming years, helped by a young and growing population, and rising wealth. Continued innovation from companies at the forefront of technology based there could also provide exciting growth opportunities for investors. However, younger economies mean the risks are greater and more volatility should be expected. While Asia is home to developed markets such as Hong Kong and Singapore, others, including China and India, are still emerging so a long investment horizon is essential to help ride out the ups and downs.

This fund is run by a manager and team with a great pedigree of investing in Asia. It could provide long-term exposure to the Asian market as part of a globally diversified investment portfolio.”